preferences are represented by the utility functionThe prices of X1 andx₂ are p₁and p2u(x₁, x₂) = x²x²1. What is the slope of the indifference curve at the point (x₁, x₂)2. Find the budget line tangent to the indifference curve (x₁, x₂)3. When consuming the best bundle that can afford, what fraction of his incomedoes Ken spend on point x₁4. Find x and x2

***Since the income value has not been provided, only the first part of the question can be solved…

Answered: preferences are represented by the…

preferences are represented by the utility function u(x₁, x₂) = x²x² The prices of x₁ and x₂ are p₁ and P₂ 1. What is the slope of the indifference curve at the point (x₁, x₂)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.4P

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