ECON 212 Practice Midterm Fall 2023 1. Aiden's budget is $1000. His utility function is u(x, y) = 20x 50y. The price of x is $50 and the price of y is $20. (a) Write down the equation that represents Aiden's indifference curves. On a graph, draw one example of his indifference curves. Clearly label the utility level associated with the indifference curve you draw. What is the slope of his indifference curves? (b) Write down the equation that represents Aiden's budget line. On the same graph as in (a), draw his budget line. Clearly label all the intercepts of this line. What is the slope of his budget line? (c) Based on your answers to the previous parts, what is Aiden's optimal choice? (d) Let p1 denote the price of x, p2 denote the price of y, and m denote Aiden's budget. Derive Aiden's demand functions x(p1, p2, m) and y(p1, p2, m). 2. Nana is an expert on baking cookies. She uses two secret ingredients: coconut sugar and almond flour. In her recipe, she wants every two servings of coconut sugar to be paired with three servings of almond flour. Let x1 be the amount of coconut sugar