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A. If two consumers are facing the same market prices, then their budget lines have the same slope. True or false? Justify your answer. (2.5
A. If two consumers are facing the same market prices, then their budget lines have the same slope. True or false? Justify your answer. (2.5 Pts) B. If two consumers are facing the same market prices, then their budget lines are the same. True or false? Justify your answer (2.5 Pts) C. Henry's utility function is u(x1, x2) = x1 2 x2 2 . Calculate marginal rate of substitution and check whether MRS decreases as good 1 increases. (10 pts) D. Why cannot indifference curves for the same consumer cross each other? Explain. (10 pts)
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