problem 2, 3, 4

Problem 2: Assume Bailey has the following utility function for electronics, E, and pizza, P: U = 4 P1/2 31/4 A. What is the marginal utility of electronics. M U E ? ls more better? What happens as consumption of electronics becomes large, E> 0 ? B. What is the marginal utility of pizza, M U E ? ls more better? What happens as conSumption of pizza becomes large, P 0 ? C. What is the marginal rate of substitution, MRSEP of electronics for pizza? What is the MRSEP atE=2,P=4?WhatisitatE=10,P=4? Problem 3: Bailey's budget is $1,500. Electronics, E, cost $250 and pizza, P, costs $15. A. Write out the equation for Bailey's budget constraint. B. Graph Bailey's budget constraint. 0. If there is a 40% income tax, what is Bailey's new budget equation? Add it to the graph. D. Starting back at the original budget, if there is a at tax of $5 added to each pizza purchase, what is Bailey's new budget equation? Add it to the graph. Problem 4: If the utility function of a Burger Patch customer on a date is U(B,F) = 2B + F, where B is burgers and F is fries, what is the optimal pricing strategy given that the customer optimizes their utility? Given this utility function, are burgers and fries substitutes or complements