Think about a consumer with a utility function given by u=ax+bx2, he is facing a budget...
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Think about a consumer with a utility function given by u=ax₁+bx2, he is facing a budget constraint: p1x1+p2x2<= 1. A). What is the slope of the indifference curve (MRS1,2)? B). What is the slope of the budget line? C). If a=1, b=2, p1=3, p24, what is the optimal consumption? D). If a=1, b=2, p1=2, p24, what is the optimal consumption?
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