3) Mobius collects jet ski calendars, which cost $5 each. He also likes to have money to spend on other things. We can write his utility function as:

U(C, D) = 10C 1 2 + D

where C is the number of calendars he buys and D is the number of dollars he has to spend on other things. (Each dollar has a price of $1) Mobius has $20.

a) How many calendars does Mobius want to buy?

b) Suppose the price of calendars falls to $1, how many calendars does Mobius want to buy?

c) Derive and plot Mobius' demand curve with price p per calendar.

d) Let the price be $5 again, but now Mobius has $40. How many calendars does he want to buy?

e) Calculate and plot Mobius' Engel curve with income Y .

f) Does the shape of Mobius' Engel curve depend on the price of calendars?