Both Mary and Anne love chocolate (x) and roses (y). Suppose that both Mary's and Anne's preferences can be represented by U(x,y) = 2sqrt(x) + 2sqrt(y)
A) What is the equation of an indifference curve for Mary? For Anne?
B) What is the MRS of these functions ? Note, MUx = x^-1/2 and MUy= y^-1/2. What is the geometric equivalent of the MRS ? What is the interpretation of the MRS.