Ben lives share a dormitory room on the UTech campus. The dormitory offers soft drinks and chips for sale in vending machines. His utility function is U(S,C )= 3S^0.25C^0.5(where S is the number of soft drinks per week and C the number of bags of chips per week).

1. Given that soft drinks are priced at $100 each, chips $50 per bag

1. Write an expression for Ben's marginal rate of substitution between soft drinks and chips.

(4 marks)

1. Derive Ben's demand function for soft drinks and chips.

(10 marks)

1. If Ben has $5000 per week to spend on chips and soft drinks,

1. Suppose the price of chips increase to $100, illustrate the price offer curve and demand curve. (put soda on the x-axis)

(8 marks)

1. Illustrate his income offer curve and Engel curve if income should double.

(8 marks)