Part III: Optimal Choice Lewis from La Jolla consumes food and housing. His student stipend is $1200/month. He has a utility function of U{F,H) =
Part III: Optimal Choice Lewis from La Jolla consumes food and housing. His student stipend is $1200/month. He has a utility function of U{F,H) = F1/3H2/3, where F is the quantity of food and H is the quantity of housing. The initial price of food is pp=2 and the price of housing is pH=20. Treat F as the (:11 axis good. 10. What is Lewis' budget constraint? 11. Find the equation for Lewis' MRS. Be sure to simplify it. 12. Find Lewis' optimal bundle of food and housing
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