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Consider a utility function u(x1 , x2) = xlxz. An indifference curve is a level curve of a utility function, which characterizes the relationship between

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Consider a utility function u(x1 , x2) = xlxz. An indifference curve is a level curve of a utility function, which characterizes the relationship between x1 and x2 for a fixed level of utility. In other words u(x1, x2) = k, for a constant k, defines an implicit function x2(x1). 1. (5 pointS) Characterize the slope of the set of indifference curves for this utility function using the implicit function theorem. 2. (5 points) Repeat the exercise in part 1 using differentials by first computing the differential dbl ,1... _ n

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