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Alex has an Instagram account and is keen to become an 'influencer'. Alex has noticed that they will get one new follower each time they

Alex has an Instagram account and is keen to become an 'influencer'. Alex has noticed that they will get one new follower each time they post two pictures of a cat and three pictures of food. It takes Alex 30 minutes to find and take a picture of a cat and 20 minutes to order and take a picture of their food. Unfortunately, Alex tends to be quite busy during an average week. They sleep nine hours a day, work for 50 hours a week and find that other activities (such as actually eating and travelling) take up around 47 hours a week. Alex can spend the remaining time trying to get as many new followers on Instagram per week as they can.

(a) What is Alex's utility function? Explain. Draw a set of indifference curves for Alex. (4 marks)

(b) What is Alex's budget constraint? Explain. Draw this on your diagram for (a). (6 marks)

(c) What is the optimal number of new followers that Alex can get in a week? Explain and show your calculations. (8 marks)

(d) Alex is unhappy about the number of new followers that they can get per week. Using what you know about demand functions in this situation, what can Alex do to increase the number of followers per week? What factors that are not part of the demand function could Alex use to get more followers per week? Explain. (12 marks)

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