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rohit lambda assigment 2 Harry likes chocolate ice cream twice as much as vanilla ice cream. Hermione only eats them together in equal proportions. 1.
rohit lambda assigment 2 Harry likes chocolate ice cream twice as much as vanilla ice cream. Hermione only eats them together in equal proportions. 1. What is Harry's utility function? What is Hermione's utility function? Suppose both have an income of $10 to spend on ice cream. Chocolate ice cream costs $2 and vanilla ice cream costs $1. 2. How many units of chocolate and vanilla ice cream will Harry and Hermione consume? Now suppose vanilla bean is in short supply. As a consequence the price of vanilla ice cream shoots up to $2 as well. 3. What is their new optimal consumption of ice creams
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