Question: Problem 5 - Consumer Choice Assume that there are / individuals, indexed by /=1,..., /. One of them, individual i, derives positive utility from her

 Problem 5 - Consumer Choice Assume that there are / individuals,

Problem 5 - Consumer Choice Assume that there are / individuals, indexed by /=1,..., /. One of them, individual i, derives positive utility from her own consumption (denote by c), from her consumption in relation to the average consumption of everybody else (the other /V-1 individuals), and from her charitable donations (denote by d). Assume an exogenous income level I. a) Write down a utility function that can represent individual /'s preferences. b) Write down (without solving) the consumer's maximization problem. c) Show in a three-dimensional graph the budget constraint and the choice set relative to the three variables that enter the utility function (carefully denote the axis, intercept values, slopes, etc.)

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