Question 4.4

this ul 4.3 a. On a given evening, J. P. enjoys the consumption of cigars 4.8 (c) and brandy (b) according to the function Suppose that & U(c, b) = 20c - 2 + 186 - 3b. goods-soft dri How many cigars and glasses of brandy does he consume during an evening? (Cost is no object to J. P.) Suppose al b. Lately, however, J. P. has been advised by his doctors that P. = 1.p he should limit the sum of glasses of brandy and cigars income is consumed to 5. How many glasses of brandy and cigars a. She will he consume under these circumstances? a. Mr. Odde Ball enjoys commodities x and y according to the utility function U(x, y) = Vx+y. Maximize Mr. Ball's utility if Px = $3, py = $4, and he has $50 to spend. Hint: It may be easier here to maximize U rather than U. Why will this not alter your results? b. Graph Mr. Ball's indifference curve and its point o tangency with his budget constraint. What does th graph say about Mr. Ball's behavior? Have you foun true maximum