Question
Nadia likes spareribs, R, and friedchicken, C. Her utility function is U=10R^2C. Her weekly income is Y=$180, which she spends on only ribs and chicken.
Nadia likes spareribs, R, and friedchicken, C. Her utility function is U=10R^2C. Her weekly income is Y=$180, which she spends on only ribs and chicken.
If she pays $20.00 for a slab of ribs and $10.00 for achicken, what is her optimal consumptionbundle?
Nadia's optimal consumption bundle contains (blank) slabs of ribs and (blank) fried chickens.(Enter numeric responses usingintegers.)
Suppose the price of chicken increases to $40.00. How does her optimal consumption of chicken and ribschange?
Nadia's optimal consumption bundle contains (blank) slabs of ribs and (blank) fired chickens. (Enter numeric responses rounded to one decimalplace.) Show her new budget line and the new optimal bundle in the same graph you draw for part a. Find Nadia's utility at the new optimal bundle.
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