2. 3. A consumer purchases two goods, food (F) and clothing (C). Her utility function is...

 

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2. 3. A consumer purchases two goods, food (F) and clothing (C). Her utility function is given by U(F,C)= FC+F. The marginal utilities are MUP =C+1 and MUC=F. The price of food is P, the price of clothing is Pe, and the consumer's income is I. 1) What is the demand curve for clothing? 2) Is clothing a normal good in this case? Charlie consumes two goods, professional baseball games (B) and mystery novels (N). The price of baseball games is P; the price of mystery novels is P. Charlie has an income of I to spend on these two goods. Charlie's utility function can be represented as U = B²N, with MU, = 2BN and MU= = B². 1) What is the demand curve for mystery novels? 2) What is the Engel curve for mystery novels? 3) Are mystery novels a normal good? 2. 3. A consumer purchases two goods, food (F) and clothing (C). Her utility function is given by U(F,C)= FC+F. The marginal utilities are MUP =C+1 and MUC=F. The price of food is P, the price of clothing is Pe, and the consumer's income is I. 1) What is the demand curve for clothing? 2) Is clothing a normal good in this case? Charlie consumes two goods, professional baseball games (B) and mystery novels (N). The price of baseball games is P; the price of mystery novels is P. Charlie has an income of I to spend on these two goods. Charlie's utility function can be represented as U = B²N, with MU, = 2BN and MU= = B². 1) What is the demand curve for mystery novels? 2) What is the Engel curve for mystery novels? 3) Are mystery novels a normal good?

Answer rating: 100% (QA)

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