1 Consider a consumer who consumes only two goods, z1 and z2. His utility function is u (1, 2) = In z1 + 2. where In represents the natural logarithm. 1.a Derive the consumer's MRS of good 1 for good 2 using calculus to calculate his marginal utility from z and his marginal utility from 2. 1.b If the price of 21 is $2 per unit and the price of za is $4 per unit, and the consumer's income is $100, What is the equation of this consumer's budget line? 1.c What are the optimal consumption choices, zi and z, for this consumer? Show your work.

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