economics

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There are two goods 1 and 2. Denote by (x1; x2) the consumption bundle consisting of x1
units of good 1 and x2 units of good 2. A consumer has preferences that described by the
linear utility function:
u(x1; x2) = x1 + 2x2:
1. Write down the equation for the indierence curve that passes through the consumption
bundle (2; 1). Draw that indierence curve in a diagram with x1 on the horizontal axis
and x2 on the vertical axis. In the same diagram, draw the indierence curve along
which the consumer's utility is 2. Determine the marginal rate of substitution (MRS).

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