please do not use hand writing and do not copy answers from what is already on course hero

Question 1. Chapter 3. Deriving individual demand functions.

Elizabeth makes $200 a week at her summer job and spends her entire weekly income on new

running shoes and designer jeans, because these are the only two items that provide utility to her.

Furthermore, Elizabeth insists that for every pair of jeans she buys, she must also buy a pair of

shoes (without the shoes, the new jeans are worthless). Therefore, she buys the same number of

pairs of shoes and jeans in any given week. (Solve the question planning to plot jeans in the yaxis

and shoes in x-axis.)

a. (10 pt.) If jeans cost $20 and shoes cost $20, how many will Elizabeth buy of each?

b. (5 pt.) Show your results by graphing the budget constraint and the indifference curve.

c. (15 pt.) Derive Elizabeth's demand function for jeans.

d. (10 pt.) Suppose that her income rises to $300. What will her new demand function be?

e. (10 pt.) Show a graphical representation of the demand functions in part c and d on the same

graph.