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Magnus enjoys eating nuts and berries. He has a utility function U(c1, C2) = Cga'cl , where 0 Magnus enjoys eating nuts and berries. He
Magnus enjoys eating nuts and berries. He has a utility function U(c1, C2) = Cga'cl , where 0
Magnus enjoys eating nuts and berries. He has a utility function U(CI, C2) = C2a-Cl , where 0 < a < 1 is a constant, Cl is the consumption of nuts and c2 is his consumption of berries. Suppose the price of a unit of nuts is 1 and the price of a unit of berries is 2. Given Magnus' income is 24, draw Magnus' budget line. How many units of nuts and berries does he buy? For what values of a does Magnus consume positive amounts of both nuts and berries?
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