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10. Susan likes to eat hamburgers (H) and steaks (S). Her utility function is given by U (H , S) = \\E + VH + 4-. The marginal utility of hamburgers is {2% and the marginal . . . 0.5 ut111ty of steaks 1s E. a. Sketch the indifference curve corresponding to the utility level U = 12. (2 marks) b. Suppose that the price of hamburgers is $8 per package and the price of steak is $1 per steak. Moreover, suppose Susan can spend $100 per month on both of these foods. Sketch Susan's budget line. (2 marks) c. Based on your answers to parts (a) and (b), what is Susan's optimal consumption basket given her budget? (2 marks)Step by Step Solution
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