Question: Jamal has utility function U B (X 1 ,X 2 )=(X 1 +2)(X 2 +3). He also has income m, and faces prices P 1

Jamal has utility function U^B(X₁,X₂)=(X₁+2)(X₂+3). He also has income m, and faces prices P₁ and P₂ for goods 1 and 2 respectively.

4.2.1 Find Jamal's optimal consumption bundle. (2)

4.2.2 What is Jamal's budget constraint? (2)

4.2.3 What is Jamal's MRS of good 1 for good 2? (2)

4.2.4 What is Jamal's optimal choice of goods 1 and 2 as functions of his income and prices? (2)

4.2.5 Korra has utility function UA(X1,X2)=[(X1+2)(X2+3)]2. She has the same income as Jamal, and faces the same prices. Find her optimal consumption bundle. (2)

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