Consider preferences over food and housing represented by the utility function U = F/3/3 A. Let...

  

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Consider preferences over food and housing represented by the utility function U = F²/3¹/3 A. Let Income = 1200, P, = 2 and P = 6. Find the quantity demanded of housing and food. Graph the budget constraint and the optimal bundle that you found. Make sure to include an indifference curve. B. Let the price of food increase to 4. Add the new budget constraint, find the new optimal bundle and add it to your graph. C. Given the bundles you found in parts a and b, graph the Marshallian demand curve for food. D. Let the substitution bundle after the price increase be F = 300, H = 100. Add the Hicksian demand curve to your graph from part d. Consider preferences over food and housing represented by the utility function U = F²/3¹/3 A. Let Income = 1200, P, = 2 and P = 6. Find the quantity demanded of housing and food. Graph the budget constraint and the optimal bundle that you found. Make sure to include an indifference curve. B. Let the price of food increase to 4. Add the new budget constraint, find the new optimal bundle and add it to your graph. C. Given the bundles you found in parts a and b, graph the Marshallian demand curve for food. D. Let the substitution bundle after the price increase be F = 300, H = 100. Add the Hicksian demand curve to your graph from part d.

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