Question: 1. (20 points) Let ($1, 12) be some interior bundle on the budget constraint, and suppose p1 = 4 and p2 = 2. If the

1. (20 points) Let ($1, 12) be some interior bundle on the budget constraint, and suppose p1 = 4 and p2 = 2. If the marginal rate of substitution at ($1, 12) is-3, then is (21, 12) optimal? Explain why or why not, and justify your answer with economic intuition. (Partial credit for a purely graphical argument. )

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