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8.)Consider the basic necessities utility function U = F**NF7 of consumers in a developing economy. In this utility function, U represents total utility (or benefits
8.)Consider the basic necessities utility function U = F**NF7 of consumers in a developing economy. In this utility function, U represents total utility (or benefits from food and non-food expenditures) while F is food and NF is non-food expenditures. Marginal utility functions for both food and non-food expenditures of consumers will be MUg = 300F /NF *? and MUy = 700F\"*NF2 respectively. Use the information provided to answer the following questions. i.)Determine consumer optimal condition -MUg/MUys =-P/Pys of consumers in this developing economy. i..)The demand for an output can be considered a locus of consumer optima points. Determine the food and non-food demand functions of consumers in this economy. The demand functions can be determined by substituting the optimal consumer condition into the budget line equation. iii.)Use the consumers' demand functions for food and non-food and an average income of 50,000 pesos to fill up the blanks in the following table. Pr F Pur NF 5 15 6 20 7 25 8 30 9 35 iv.)Can you consider the consumers' demand for food and non-food to be normal goods? Answer yes or no but justify your answer using the relevant consumers' demand functions for food and non-food. Can you consider the consumer's demand for food and non-food to be inversely (or negatively) related to respective prices? Answer yes or no but justify your answer using the relevant consumers' demand functions for food and non-food
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