Question: Consider a model with two goods, apple(X 1 ) and banana(X 2 ). Each good must be considered in a non-negative amount. My preferences over

Consider a model with two goods, apple(X1) and banana(X2). Each good must be considered in a non-negative amount. My preferences over these two goods can be represented by the utility function u=10-X1 -X2.

  1. 4pts) Sketch a diagram illustrating two of my indifference curves for levels of utility of your choice (please remember to label your axes and to label each indifference curve with its utility level).
  2. 4pts) Say I have m=50 to spend and that p1=5 and p2=20. What is my optimal choice of consumption bundle and why?
  3. 4pts) give a different utility function that would represent exactly the same preference as u=10-X1 -X2. Briefly explain your answer.

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