Question: (a) Solve the consumers problem for a consumer with the utility function U (b, c, s) = 8 ln(b + 2) + 6 ln(c +
(a) Solve the consumer’s problem for a consumer with the utility function U
(b,
c, s) = 8 ln(b + 2) + 6 ln(c + 1) + 2 ln(2s + 1), if the prices are pb = $1, pc = $2, and ps = $4, and the consumer has $18 to spend.
(b) Solve the consumer’s problem for a consumer with the utility function U
(b,
c, s) = 8 ln(b + 2) + 6 ln(c + 1) + 2 ln(2s + 1), if the prices are pb = $1, pc = $2, and ps = $4, and the consumer has $6.50 to spend.
(c) Solve the consumer’s problem for a consumer with the utility function u
(b,
c, s,m) = 8 ln(b + 2) + 6 ln(c + 1) + 2 ln(2s + 1) + m, where m is money left over, if the prices are pb = $1, pc = $2, and ps = $4, and the consumer has $50 to spend. What if the consumer has $500 to spend? What if the consumer has
$18 to spend? What if the consumer has $6.50 to spend?
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