1. Danny is going to Dallas for the day to watch his favorite Softball team. Andrew loves his softball, but he is addicted to drinking beer (B) and eating hotdogs (D) while watching his team. His utility function is:

U = (B*D)^1/2

a. Suppose Andrew has $50 to spend on beer and hotdogs. Beer costs $5 a mug and a hotdog costs $4. Draw Andrew's budget constraint.

b. Suppose Andrew spends all of his income on beer. How many mugs of beer can he buy? What is his utility?

c. Will Andrew's income allow him to reach a U = 5?

d. If Andrew buys 4 hotdogs, how many mugs of bear can he buy? What is his utility?

e. What is the combination of beer and hotdogs that yield the highest utility?