Question: Part 1. Assume p = 1 and p2 = 2, and the consumer has income M = 10. Find the consumption bundles for the

Part 1. Assume p = 1 and p2 = 2, and the consumer has income M = 10. Find the consumption bundles for the

Part 1. Assume p = 1 and p2 = 2, and the consumer has income M = 10. Find the consumption bundles for the consumer's budget constraint. Find utility-maximizing following utility functions: (a) u(x, 1) = x + x (b) u(x,12)=. Part 2. Now assume the prices change to p = 2 and p2 = 1. What is his new budget constraint? What happens to the utility-maximizing consumption bundles in the two cases?

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