Doritos is facing competition from Casey's chips.

1. How many bags of each type of chip will Josh buy? His budget constraint each week for chips is $8. Please show all work and in your words explain how you came to this answer. (How do you determine the utility maximizing combination?)

Josh-Doritos $2	TU
1 Bag	100
2 Bags	180
3 Bags	240
4 Bags	280
5 Bags	290
6 Bags	300

Josh-Casey's $1	TU
1 Bag	30
2 Bags	60
3 Bags	80
4 Bags	90
5 Bags	95
6 Bags	90

1. What if the price of the Casey's chips goes up to $2? How many of each will he buy?

1. Draw Josh's demand curve for Casey's chips.

1. If Jake will buy 4 bags of Casey's chips when the price is $1 and 3 bags when the price is $2, and Lauren will buy 1 bag at $1 but none at $2, draw the market demand curve for Josh, Jake, and Lauren: