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2. A consumer has a utility function u(x1, X2) = =In(x,) + $In(x2). a. Compute the marginal utilities (MU, and MU2) and the marginal rate
2. A consumer has a utility function u(x1, X2) = =In(x,) + $In(x2). a. Compute the marginal utilities (MU, and MU2) and the marginal rate of substitution (MRS) of this utility function. (3 pt) b. Set up the Lagrangian function for this consumer's constrained optimization problem. (1 pt) c. Derive the first-order conditions for the constrained optimization problem. (3 pt) d. Solve the above first-order conditions to derive this consumer's demand functions X1(P1, P2, m) and X2(P1, Pz, m). (2 pt)
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