Question: Siv has the utility function: U (X, Y) = X 0,5 +Y 0,5 , X being hers chocolate consume which costs 10 kr per piece,

Siv has the utility function:

U (X, Y) = X0,5 +Y0,5 , X being hers chocolate consume which costs 10 kr per piece, and Y is hers espresso consume costing 30 kr per piece.

a) Present Sivs demand for chocolate and espresso.

b) Assume that hers income is I = 1000 kr. How many chocolates and espresso will buy?

c) What is the marginal utility of hers income?

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