Question: Sharon has the following utility function: U(X, Y) = VX + VY where X is her consumption of candy bars, with price Px = $1.00,

 Sharon has the following utility function: U(X, Y) = VX +

Sharon has the following utility function: U(X, Y) = VX + VY where X is her consumption of candy bars, with price Px = $1.00, and Y is her consumption of espressos, with Py = $4.00. Derive Sharon's demand for candy bars and espresso. Sharon's demand of candy bars and espressos is riv th O A. X = 0.8001 and Y = 0.0501. O B. X = 1.6461 and Y = 0.5641. O C. X = 0.8381 and Y = 0.0501. O D. X =0.4761 and Y = 0.1721. O E. X = 0.4611 and Y = 0.5641. Assume that Sharon's income is I = $125. How many candy bars and how many espressos will Sharon consume? le Sharon will consume candy bars and espressos. (Enter your responses rounded to two decimal places.) What is the marginal utility of income? The marginal utility of income is . (Enter your response rounded to two decimal places.) Click to select your answer(S)

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