Nick's utility over hummus (h) and books (b) is described by U(Qh, Qb) = Q0.7 h Q0.3 b . (a) Nick has $60 to spend. The price of hummus is $6 per unit, and the price of books is $18 per unit. Write the equation for Nick's budget constraint and graph it. (b) How much hummus and books will Nick buy? How much utility does he derive from the optimal bundle? (c) Show Nick's optimal consumption on a graph

Answer rating: 100% (QA)

Nicks utility over hummus h and books b is described by the function UQ... View the full answer