uA (x1, x2) = 13 - 1/x1 - 1/x2

uB (x1, x2) = K lnxi + lnx2

good 1 = concert

good 2 = food

a. Calculate MRS for each of them and explain what their utility functions have in common.

Now think about that at the current prices, both of them have the same bundle of (x1, x2) (9,16). Show that you can use this information to show the value of parameter K.

b.

Now, think about how each consumer gets an extra $1 of income. Who increases their consumption of concert, uA or uB? Or is it impossible to calculate?

Now let's assess if the concert price drops by 75%. who increases their consumption of concert more, or is it impossible to calculate?