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Question 5 a. Michelle has $7 to spend on makeup and clothes and wants to maximize her utility on her purchase. Based on the data
Question 5 a. Michelle has $7 to spend on makeup and clothes and wants to maximize her utility on her purchase. Based on the data in the table, how much makeup and clothes should Michelle purchase to maximize her utility. Show all working [5 marks] Makeup= $1 Clothes = $0.50 Quantity Total Utility Quantity Total Utility 1 28 1 12 52 N 22 72 30 88 36 100 40 108 42 112 42 112 40 b. Jamani earns a weekly income of $6000. Suppose he wishes to spend this income on two goods, games and DVDs only. A game costs $200 while a DVD costs $600
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