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please can you interpretate and calculate MRS please provide more explanation 2. Suppose Slava's utility function is U(1, 12) = (x1) (x2) and his budget

please can you interpretate and calculate MRS please provide more explanation

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2. Suppose Slava's utility function is U(1, 12) = (x1) (x2) and his budget constraint is pill + p242 = I. (a) Find the formula for an indifference curve that yields some utility c. Graph it. (b) Calculate the MRS at any bundle ($1, 12) (using marginal utilities). (c) Now, calculate MRS at any bundle (X1, 12) by directly evaluating the slope of an indifference curve and show that your answer is the same as in part (b). (Hint: Set up an arbitrary indifference curve: u (X1, X2) = c. Differentiate both sides by 2. Then think about what "c" means and substitute appropriately). (d) Briefly interpret how the MRS changes along an indifference curve. (e) Suppose Slava finds himself consuming a bundle where the indiffer- ence curve is steeper than the budget line. Explain why this is not his optimal bundle

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