2.3 Elsa works as a mountain guide in Lyngen. After paying for rent and other necessities Elsa has a budget (I) of 200 kronor each week that she can choose how to allocate between food (F) and entertainment (E). Assume that the price of F (PF) is 20 kronor per unit and the price of E (PE) 20 kronor per unit. a) Draw Elsa's budget constraint. b) Assume that her utility function is given by U=\\/F - E . Indicate the following consumption baskets in the same figure as in a}: SP and 2E, 4F and 4E, 2F and 8E. What is the level of utility for these different baskets? Would any of these three baskets be preferred by Elsa over the other? Why/why not? c) Again assume the same utility function as in b) but now consider the basket 5F and 5E. Would this be preferred over any of the baskets in b? Is it affordable for Elsa? cl) Assume that her budget increases to 400 kronor each week. Draw the new budget constraint. For this particular utility function (CobbDouglas) demand for F is given by O.5*l / PF (see GLS page 131135 for a derivation) and equivalently for E. How much E and F will she consume at this higher income? What is her utility level