Question: problem below Problem 2 Text: Consider a consumer whose preferences are characterized by the utility function u(x],*2) = x + In x2. This utility function

problem below

problem below Problem 2 Text: Consider a consumer whose preferences are characterized

Problem 2 Text: Consider a consumer whose preferences are characterized by the utility function u(x],*2) = x + In x2. This utility function is often used to represent the tastes of a consumer to whom good 1 is non-essential, while good 2 is. Furthermore, the tastes represented by this utility function satisfy the five standard assumptions about tastes introduced in the lectures. Based on this information, answer the following questions (questions 10-15). Questions: 10. Which of the following maps of indifference curves is the one associated with the utility function above? 11. What is the value of the MRS at bundle (3,4)? [Hint: MU,=1 and MU2=1/x2]. 12. What is the quantity of good 1 chosen by the consumer when p1=$15, p2=$1.5 and 1=$30? 13. What is the quantity of good 2 chosen by the consumer when p,=$15, p2=$1.5 and 1=$30? 14. Now suppose income decreases to /=$7.5 while prices remain p1=$15 and p2=$1.5. What is the quantity of good 1 chosen by the consumer? 15. Suppose again income decreases to /=$7.5 while prices remain p1=$15 and p2=$1.5. What is the quantity of good 2 chosen by the consumer

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