Problem 3 Cersei Consumes Apples Bananas Likes Denote Za Amount Apples Tp Amount Bananas Q29649141

Problem 3 Cersei consumes apples and bananas. She likes both of them. Denote by za the amount of apples and by Tp the amount of bananas. Her consumption bundle is denoted by (za,z). Cersei’s preferences are represented by the following utility function: 1. Derive the equation for Cersei’s indifference curve. Derive the indifference curve that passes through the consumption bundle (1,2). Draw that indifference curve in a diagram with quantities of apples aa on the horizontal axis and quantities of bananas rb on the vertical axis. In the same diagram, draw the indifference curve along with Cersei’s utility is 6 2. Calculate Cersei’s marginal utility of apples (MUa). Calculate Cersei’s marginal utility of bananas (MUb). Determine the marginal rate of substitution (MRS) for Cersei. What is Cersei’s MRS at the point (1,2) and what is her MRS at the (2, 2)? Show transcribed image text