1. Vincent Price utility function is which the following marginal utilities:

His income is $200 and the price of X is $6 and the price of Y is $4.

1. Find Vincent's optimal basket given those price and income
2. If the price of X increases to $9 and that the income does not change, by how much would the price of Y change to be just as well off as before?

1. [3 points] A policy maker needs to make a choice. He only has 1 goods to distribute. During the CDVIDIQ outbreak, some towns ran out of food. The policy make has the last piece of food for the day but there are two indiyidual which want it. Someone who is poor [low income] and someone rich [high income]. The policy maker does not know what to do and the two waiting for the food start talking to him: - Listen, I'm richl I took the economic class and my willingness to pay is really high {my demandil Which means that I will have the most consumer surplus between me and the poor. Give me the food! As it will increase social welfare! Does he have a point? IIlEan you use consumer surplus to help you decide who to give the food to? Should you? I. [4 points] Vincent Price utility function is HILL 1") = K2 Y, which the following marginal utilities: MUX = 21ft", MU? =XE'I His income is 52m} and the price of if is $5 and the price of "I" is $4. a. Find 'y'incent's opmal basket giyen those price and income b. If the price of it increases to $9 and that the income does not change, by how much would the price of '1' change to be just as well off as before? (HARD, I will be negatiye use ' -'eguationcalculator to solve} 3. [3 points] Christopher Lee has the following utility function U{C. W} = min{3, W}, where C is Cheese and W is Whiskey. a. Find the demand curve for Cheese and Whiskey. [find : DC {PDPWJJ and Emma. PWJ )l