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2. Assume a consumer has as preference relation represented by u(x1; x2) = ax1 + bx2...

2. Assume a consumer has as preference relation represented by u(x1; x2) = ax1 + bx2 with x 2 C = R2 +; and a; b > 0: Answer the following: a. Show the preference relation this consumer is convex and strictly monotonic. b. Graph the indiference curves for this consumer c. Compute the MRS between good 1 and good 2, and explain why it coincides with the slope of an indiference curve. d. Characterize the demand functions/correspondences for this consumer. In doing so, are the consumers demands allows functions? explain.

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