Question: Problem 4: Perfect Substitutes [5 Points] Consider an Individual who buys films (F) and books (B) with the following utility function: U(F,B) = SB +

Problem 4: Perfect Substitutes [5 Points] Consider an Individual who buys films (F) and books (B) with the following utility function: U(F,B) = SB + 2F This individual also has the following incomes (m) and prices (pp and p3): m = $5049. = $5,193 = $10 Given the above: 12. Draw the utility functions for utility levels of 10 and 20. Draw these with films on the x axis and books on the yaxis. Show your work. [1 points] 13. What is the MRS for these utility functions? Assume that films remain on the xaxis and books remain on the yaxis. Show your work. [2 points] 14. What is the consumption bundle that delivers the highest level of utility that is also affordable? Show your work. [2 points]

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