Consider the utility function . Which of the following are true statements about the indifference maps represented by this function.
A.
MRS=-1 along the 45 degree line if and only if .
B.
MRS=-1 along a ray steeper than the 45 degree line if and only if .
C.
MRS=-1 along a ray shallower than the 45 degree line if and only if .
D.
All of the above.
E.
None of the above.
Answer: A
Economics