7 Consumer Choice Calculations (a) Wanda Littlemores utility function is U (1:, y) 2 LI: + 20y 2312. Therefore, her marginal rate of substitution is 20i4y. Suppose that the price of :1: is 3 and the price of y is 24. What is the utilitymaximizing condition for Wanda's consumption of goods 3: and 3;, given her preferences and these prices? (Hint: your answer will be \"equation (1)\" in the steps that you have studied to solve the consumer choice problem.) (b) Charlies utility function is U(:rA, 1123) = @4223. Charlies income is $80, the price of apples is $4, and the price of bananas is $2. In this problem, the utility-maximizing condition is: 3'13 = 2 (1) 37A and the budget equation is: 413A + 2563 : 80 (2) Use these two equations to solve for the optimal quantities of apples for Charlie to consume. 8 Consumer Choice Concepts In the previous problem, will the indfl'erence curve that passes through the optimal bundle lie above the budget line} cross the budget line, or just touch the budget line