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1. Rachel enjoys only hot dogs (h) and soft drinks (s), and the two items provide her a utility of Utility-Uth.s)-hs a. (5 pts)
1. Rachel enjoys only hot dogs (h) and soft drinks (s), and the two items provide her a utility of Utility-Uth.s)-hs a. (5 pts) If hot dogs cost $2 each and soft drinks costs $4 per cup, how should Rachel spend her 58 income to maximize her utility? b. (5 pts) If the price of hot dogs increases to $8 each, by how much should Rachel's income increase to provide her with the same level of utility she received in part (a)?
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