Question: Given Amy's utility function: u (x 1 , x 2 ) = lnx 1 +lnx 2 and budget p 1 x 1 +p 2 x

  1. Given Amy's utility function: u (x1, x2) = lnx1+lnx2 and budget p1x1+p2x2=B, find her MRS, algebraically derive her demand for x1, and show it is downward sloping.

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