1.

Given the Utility function U(X,Y) = 8X + 8Y, where the MUx = 8 and MUy = 8

a)[3 points]If income was 1,750, and the price of X was 16.75 and Y was 3.00, How much utility would this consumer obtain given that he is maximizing utility ?(2 decimal precision)

b)[3 points]Illustrate 1 indifference curves for Utility equal to 170. Make sure to identify at least 3 sets of coordinates for the curve.

c)[4 points]Obtain the demand function for Y.

2.

The Bachelor Chow corporation sells dog food-like bachelor food. to produce the chow, the corporation needs to use a

mix of kibbles (K) and some water (W) in the following proportions:Q(K,W)=min{6K,8W}

The cost of Kibbles is 1 and the cost of water is 10.

a)If Bachelor chow wanted to produce 103 cans of chow, how many Kibbles would it need such that it minimized its cost (in the long run)?

b)Obtain the conditional factor demand function for kibbles: K.

c)If the firm received an order for 103 Bachelor Chow, and only had W=11, would it be possible for it to meet its order? If so, how much Kibble would need to be used, and by how much would this cost more than the efficient long run input choice?