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Homework Statement
For u(x1, x2) = ax1 + bx2
a) find total differential
b) Draw a representative level curve for u = ubar (u with a line over it)
c) Find MRS (marginal rate of substitution)
Homework Equations
u(x1, x2) = ax1 + bx2
The Attempt at a Solution
a)
fx1 = a
fx2 = b
du = fx1dx1 + fx2dx2
du = adx1 + bdx2
b)
c) adx1 + bdx2 = 0
bdx2 = -adx1
-(dx2/dx1) = a/b
∴ MRS = a/b