The utility that Ann receives by consuming food F and clothing C is given by U(F,C)=?FC/4 + F. Food costs N$5.00 a unit, and clothing costs N$15.00 a unit. Ann's income is N$1850.00.

Please note that U(F,C) = the sqaure root of FC divided by 4 plus F. In my previous request for this question, it seemed the square was not taken into account, thus I felt the answer provided was incorrect.

QUESTION 2 (25 MARKS) The utility that Ann receives by consuming food F and clothing C is given by U(F,C) = 4%? +F. Food costs NSSDO a unit, and clothing costs N$15.00 a unit. Ann's income is N51850.00. a) Ann is currently spending ali of her income. She is buying 8 units of food. How many units of clothing is she consuming? [2 marks] b) Graph her budget line. Place the number of units of clothing on the vertical axis and the number of units of food on the horizontal axis. [4 marks] c) Draw the indifference curve associated with a utility level of 36 and the indifference curve associated with a utility level of 72. Are the indifference curves bowed in toward the origin? [6 marks] d) Using algebra, find the utility-maximizing choice of food and clothing. [10 marks] e) What is the marginal rate of substitution of food for clothing when utility is maximized? [3 marks]