A consumer has the following utility function: Ulqncul= qf 122 The prices and income are p1=10, p2=5, and v=100. 1. {2 points) Find the MRS equation for this consumer. MRS = -3q2f2q1 {leaving out the negative sign is OK} 2. (2 points) Write the budget constraint using the income and prices given. him + 5q2 = 100 3. (2 points) Find the consumer's optimal bundle. Algebra: Set 3:12]qu = 105, and so q2 = 4q1/3. Then the BC is loql + 5(4q1/3)=1OO. 50q1f3=10. And so we get... q1 = 5 (12 = 3 4. In the blackberry market, the quantity demanded and the quantity supplied is given by an: 1600-400.\" and Qs= 200P+ 100 What is the equilibrium price and quantity? Q: 600 p= 2.5 {1/2 pointfor getting one of the two blanks correct) 5. Suppose a tax of $3 per unit is imposed on buyers in the market. The equilibrium price and quantity are now Q'= zoo p'= 0.5 {1/2 point for getting one of the two blanks correct) 6. The tax burdens {per unit bought or sold} are Burden on Buyers = 1 Burden on Sellers = 2 _ _ .. A- . .- u . _ . _