Question
Jennifer is a single mom with a weekly budget of $100. She can spend her weekly income on food and diapers for her son. Price
Jennifer is a single mom with a weekly budget of $100. She can spend her weekly income on food and diapers for her son. Price of food is $1 and price of a diaper is 50 cents. Her son needs at least 5 diapers a day, therefore she must purchase at least 35 diapers weekly. Jennifers utility function is U(f,d) = f0.9d0.1, where f and d represent quantity of food and diapers, respectively.
Find Jennifers optimal consumption bundle. Make sure to draw her budget constraint and indifference curves and clearly demonstrate your solution.
Jennifers uncle Sam, who is aware of her financial troubles, offers to help her out. Specifically, he offers to pay half of her weekly diaper expenses. How many diapers Jennifer would buy now? Again, demonstrate your solution both graphically and analytically.
Both questions pls
Question 1 (30 points) Jennifer is a single mom with a weekly budget of $100. She can spend her weekly income on food and diapers for her son. Price of food is $1 and price of a diaper is 50 cents. Her son needs at least 5 diapers a day, therefore she must purchase at least 35 diapers weekly. Jennifer's utility function is U(f,d)=f0.9d0.1, where f and d represent quantity of food and diapers, respectively. Question 1 Part a Find Jennifer's optimal consumption bundle. Make sure to draw her budget constraint and indifference curves and clearly demonstrate your solution. Question 1 Part b Jennifer's uncle Sam, who is aware of her financial troubles, offers to help her out. Specifically, he offers to pay half of her weekly diaper expenses. How many diapers Jennifer would buy now? Again, demonstrate your solution both graphically and analytically. Question 1 (30 points) Jennifer is a single mom with a weekly budget of $100. She can spend her weekly income on food and diapers for her son. Price of food is $1 and price of a diaper is 50 cents. Her son needs at least 5 diapers a day, therefore she must purchase at least 35 diapers weekly. Jennifer's utility function is U(f,d)=f0.9d0.1, where f and d represent quantity of food and diapers, respectively. Question 1 Part a Find Jennifer's optimal consumption bundle. Make sure to draw her budget constraint and indifference curves and clearly demonstrate your solution. Question 1 Part b Jennifer's uncle Sam, who is aware of her financial troubles, offers to help her out. Specifically, he offers to pay half of her weekly diaper expenses. How many diapers Jennifer would buy now? Again, demonstrate your solution both graphically and analyticallyStep by Step Solution
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