lQuestion 4 '1'] Marks [0

Subject:EconomicsPrice:9.82 Bought3

Share With

lQuestion 4 '1'] Marks [0.5, I15, 2, 5, 3] ?r consumer has the following utility function U [X1.><2]=><1[><s +4] Prices of the two gootls X1 and x2 respectively are rm and o: and the consumer has income m. We assume that all prices and income are strictly positive. Furthermore, throughout this question we assume that m a 4P2- (ajl ((1.5 marks) Find the consumer's MRS between the two gootls lie, marginal utility of><1 divided by marginal utility of 3:2]. (h) ((1.5 marks) Write clown the eguation forthe consumer's hudget line and the slope of the budget line where x1 is on the horizontal axis and X2 is on the vertical axis.