(a) Suppose a consumer has utility function U

(b,

c, f,m) = ln

(b) + ln(c + 3) + (2f − f2) + m, where b is loaves of bread, c is kilos of cheese, f is kilos of fudge, and m is money left over. The consumer has $100 to spend, which (you may assume)

leaves him with money left over after purchasing the optimal amounts of bread, cheese, and fudge, at any prices for those three goods. What are his demand functions (or, if it is easier, his inverse demand functions) for the three goods?

(b) What is the most he will spend on the three goods? To answer this question, you have to find prices for the three goods that maximize his expenditures on each. (This is a little tricky when it comes to cheese.)