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2. Jose's preferences are given by the utility function U = x- + 40x,. a. Draw the indifference curves for utility levels of 100, 144,
2. Jose's preferences are given by the utility function U = x- + 40x,. a. Draw the indifference curves for utility levels of 100, 144, and 196. b. Suppose that the price of x, is $5, the price of x, is $1, and the income is $500. i.Identify the optimal bundle. Make it very clear how you obtain your answer. ii. Provide a graph of the indifference curve and budget constraint and indicate Jose's optimal choice
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