Jen makes $50 per week and spends all her income on bowling and movie. Bowling costs $10 an hour, and Jen plays 2 hours each week. Movie costs $15 per ticket, and Cindy purchases 2 tickets. When Cindy income increases to $80 per week, she has 2 hours of bowling each week, and purchases 4 movie tickets.

Based on these figures, indicate whether each of the following statement is true or false, and explain why

A - Bowling is a necessity

B - Movie ticket is an inferior good

C - Bowling is a luxury good and movie ticket is a normal good

Cooper spends his budget on noodles (N) and chips (C). Noodles are priced at $10 per bowl, while chips are priced at $2 per bag. Assume that Nathan has $30 to spend and his utility function can be represented as U(N, C) = N^0.8C^0.2. The MU_N = 0.8N^-0.2C^0.2, and MU_C = 0.2N^0.8C^-0.8.

A - What is the optimal bundle of noodles (N) and chips (C) for Cooper to purchase? How much utility does this combination give him?

B - If the price of chips increases to $4, how much income must Cooper make to maintain the same level of utility?

Darius's utility function isU= 6XY, where theMU_X= 6YandMU_Y= 6X. The prices of goodXand goodYare $12 and $15, respectively. Suppose that Darius's indifference curve is tangent to his budget constraint, where he is consuming 20 units of goodX.How many units of goodYmust Darius be consuming?