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Question 2 (a) (1) If a utility function, u, is given by u(x1, x2) = vx1 + vx1x2, then show that the marginal rate of

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Question 2 (a) (1) If a utility function, u, is given by u(x1, x2) = vx1 + vx1x2, then show that the marginal rate of substitution between the two goods, x, and X2, is _ Vatx X 1 (ii) If another utility function, v, is of the form, v(x1,x2) = \\x1 + x1x2 , then what can you infer about the nature of preferences implied by the v-function in relation to the u-function? (9 marks)

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