Question: Suppose that the utility function is: u(x1, x2) = x/x_1+ x2 ** Part a (10 marks) Find the level of utility at (x1, x2) =

Suppose that the utility function is: u(x1, x2) = x/x_1+ x2

Suppose that the utility function is: u(x1, x2) = x/x_1+ x2 ** Part a (10 marks) Find the level of utility at (x1, x2) = (9, 1). ** Part b (10 marks) Suppose that x1 = 9 increases by 0.01. Find 3/ such that: u(9, 1) = u(9 + 0.01,1+ 3/) ** Part c (5 marks) Evaluate the approximate MRS by: 7' 0.01 ** Part d (5 marks) Show that the approximate MRS you evaluated in Part c is approximately the same from a direct calculation using calculus

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