Question 1 (3.5 points) Ming spends her entire weekly budget M > 0 on candy bars...

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Question 1 (3.5 points) Ming spends her entire weekly budget M > 0 on candy bars (x) and comic books (y). If she spends all of M, she can buy: • 4 candy bars and 4 comic books. • 5 candy bars and 3 comic books Note: We assume that both candy bars and comic books are infinitely divisible. Wherever rounding is needed, please round to 3 decimal points. (a) (0.5 point) Let pa denote the price of a candy bar (x) and py denote the price of comic books (y). Using the above information, we can determine that Pa/Py (b) (0.5 point) If Ming spends entire income M on buying comic books (y), what is the maximum number of comic books she could buy? y = (c) (0.5 point) If Ming spends entire income M on buying candy bars (*), what is the maximum number of candy bars she could buy? X = (d) (1 point) Ming's preferences over candy bars (x) and comic books (y) is given by the utility function x, x ≥ y, U= max{x,y} Y₂ x < y. One property among the four listed below does not hold for Ming's preferences. Which one? OConvex OMonotone OTransitive OComplete = (e) (1 point) Given the utility function in (d) and the budget constraint implied by parts (a)-(c), the maximum utility that Ming could get is Question 1 (3.5 points) Ming spends her entire weekly budget M > 0 on candy bars (x) and comic books (y). If she spends all of M, she can buy: • 4 candy bars and 4 comic books. • 5 candy bars and 3 comic books Note: We assume that both candy bars and comic books are infinitely divisible. Wherever rounding is needed, please round to 3 decimal points. (a) (0.5 point) Let pa denote the price of a candy bar (x) and py denote the price of comic books (y). Using the above information, we can determine that Pa/Py (b) (0.5 point) If Ming spends entire income M on buying comic books (y), what is the maximum number of comic books she could buy? y = (c) (0.5 point) If Ming spends entire income M on buying candy bars (*), what is the maximum number of candy bars she could buy? X = (d) (1 point) Ming's preferences over candy bars (x) and comic books (y) is given by the utility function x, x ≥ y, U= max{x,y} Y₂ x < y. One property among the four listed below does not hold for Ming's preferences. Which one? OConvex OMonotone OTransitive OComplete = (e) (1 point) Given the utility function in (d) and the budget constraint implied by parts (a)-(c), the maximum utility that Ming could get is