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as the picture Question 3 (15 marks) Part a. (10 marks) Suppose that the MRS of consuming (x1, x2) is X2 x1 2 and that

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Question 3 (15 marks) Part a. (10 marks) Suppose that the MRS of consuming (x1, x2) is X2 x1 2 and that P1, p2 > 0. Find out (P1, p2) such that (x1,x2) = (0.2,0.8) is the optimal bundle chosen by the consumer Part b. (5 marks) Show that as long as p1, p2 > 0, the optimal bundle is always interior, i.e., it is impossible to obtain corner solution with the MRS being x2/x1

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