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Part II. Short Answer Questions (40 pt.) Show your work wherever possible. 13. Joanna has the following utility function consisting of her consumption of bagels

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Part II. Short Answer Questions (40 pt.) Show your work wherever possible. 13. Joanna has the following utility function consisting of her consumption of bagels (B) and cups of coffee (C). U(B, C)=BBC Joanna's utility-maximizing bundle is B=3 and C=1. 13.1 (6pt) Please calculate the relative price PB/Pc. 13.2 (6pt) Everything else held equal, a promotion of 50% off on all bagels is going on. Calculate the new marginal rate of substitution (MUB/MUc) at the new utility-maximizing bundle. 13.3 (6pt) Using the cross price elasticity of demand to determine whether Bagels and Coffee are complements? Substitutes? Or irrelevant for Joanna

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