Problem 3 (Solved in recitation) John a hedge fund CEO, has a monthly budget of S I ,600 to buy whisky and cigars. A good bottle of whisky costs $50 while a box Of COStS John'S preferences for Whisky and Cigars are represented by the utility function c) = (this is a Cobb-Douglas utility function), Where w is measured in bottles and boxes. a) In a diagram With measured Along the horizontal draw budget constraint. b) Write the expression Of a John'S indifference curves When his utility level is U = c) Find the expression Of Of for Whisky at generic combination d) Using the method, find optimal Of Whisky and Cigars. e) In your diagram, add an Indifference curve to illustrate optimal Choice. We are interested in the Way price Changes might affect John'S purchases Of Whisky and Cigars and so We Wish to determine the expression Of demand _ O the price Of Whisky PW and keeping the price Of Cigars at per box and budget at find John's demand for whisky (this will be a function Qw = D(Pw))_ NOW use the letter Y to lab-el and the letters PC to label the price Of Cigars and find demand for whisky as a function of PW, Y, and Pc.