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Problem 3 [20 pts] Consider the utility function u(x1, x2) = 3In(x1) + x2. Initially p1 = $1 and p2 = $2. Income is $

Problem 3 [20 pts] Consider the utility function u(x1, x2) = 3In(x1) + x2. Initially p1 = $1 and p2 = $2. Income is $ 15. 1. Derive the optimal consumption bundle. [05 pts] 2. If the price of good 1 doubles to $ 2, derive the new consumption bundle. [03 pts]

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