Question: 5. Finally consider a consumer who has a utility function we have never seen before: U(X1, X2) = X12 1/2 + X 2 1/2. a.

5. Finally consider a consumer who has a utility function we have never seen before: U(X1, X2) = X12 1/2 + X 2 1/2. a. Start by graphing a typical indifference curve where U(x1, X2) = 100. Graph enough points to get a general sense of the shape of the indifference curve. Does the shape of this indifference curve identify the preferences as falling into any of the general classes of preferences we learned about in class? If so, you should have an idea about how to go about solving for the optimal bundle. If not, add a graph of the budget constraint to the diagram: given the shape of the indifference curves and the budget constraint can you tell where the consumer will choose the optimal bundle? b. Given your answer for a. above, go through the necessary steps to solve for the optimal bundle using the prices and income given above
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