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Daddy Eco has utility function of U(x_1,x_2 )=2x_1+ 6(x_2 ), where x1 is his consumption of pizza, and x2 is his consumption of coke. P1
Daddy Eco has utility function of U(x_1,x_2 )=2x_1+ 6(x_2 ), where x1 is his consumption of pizza, and x2 is his consumption of coke. P1 and P2 are prices for x1 and x2 respectively and M is his income
a. Find the slope of Daddy's indifference curve. (4 pts)
b. Find the slope of Daddy's budget line. (2 pts)
c. Solve for x2. (5 pts)
d. Now you need to find his demand for Pizza as a function of her income and prices. (4 pts)
e. If Daddy has income of $200, P1 is $2 and P2 is $4, how much Pizza and Coke will he consume? (6 pts)
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