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Question 8 (Utility). Suppose a consumer's utility function is given by U(x1, x2)=x1*x2 a) Draw an indifference curve with a value of 10 and an
Question 8 (Utility). Suppose a consumer's utility function is given by U(x1, x2)=x1*x2
a) Draw an indifference curve with a value of 10 and an indifference curve with a value of 16. Label two points on each indifference curve as well as the axes.
b) What is the marginal utility with respect to x1? What is the marginal utility with respect to x2? What is the marginal utility of x1 and x2 at the point (10, 5)?
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