Problem 2 Suppose now that John has also two favorite kinds of apples: Red Delicious (x1) and Jonagold (x2). He loves them both, and actually does not distinguish between the two kinds. a) In a graph show John's indifference curves that pass through bundles (3 ,2) and (3 ,3). b) Comment the shape of the indifference curves depicted in question a). 0) Suggest two distinct utility functions (analytically) that represent such preferences. Explain your steps. d) Derive analytically the MRS. How does MRS depend on the values of x1 and x2. Intuitively explain why. e) John spends his total income of 1003 paying 2 for each red Delicious and 1 for each J onagold. Set up the problem that John must solve to nd his optimal bundle. f) Explain in words (without the use of any math) how John would nd the optimal bundle. g) Find analytically John's optimal bundle, and show it on the graph. h) Explain in words and using any necessary math how would the optimal bundle of apples change for John if one day the price for one Red Delicious is 16 and the price for a J onagold is 2. i) Explain in words and using any necessary math how would the optimal bundle of apples change for John if one day the price for one Red Delicious is 16 and the price for a J onagold is 16