I thought of no#1 to be false (think Pareto curve): Diminish marginal utility of X means more substitution (marginal utility of Y increases)- so more of Y given up to get little more of X, right?
I thought of no#1 to be false (think Pareto curve): Diminish marginal utility of X means more substitution (marginal utility of Y increases)- so more of Y given up to get little more of X, right?