For the utility function in part a below, draw a set of indifference curves showing utility levels U = 12, U = 16, and U = 24. U = XY What is the relationship between the two goods X and Y? (as implied by shape of indifference curves) What is the marginal utility of X? Q2) John and Sam have the same income. The stadium sells hot dogs for $4 and popcorn bags for $3. They have different preferences; John likes popcorn much more then Sam. At their optimal bundles, John and Sam’s Marginal Rates of Substitution will be:

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