Solomon eats fish and chips. His utility is U(F, C) = FC and he has income Y to spend on fish which cost pf and chips pc.

a) Calculate Solomon's Mashalian (uncompensated) demand for fish and for chips.

b) Calculate Solomon's Hicksian (compensated) demand for fish and for chips.

c) Suppose Y = $24, pf = $4, and pc = $31:

i) How much of each good will Solomon buy?

ii )If the price of chips increases to $4, how much of each good will he buy?

iii) With the new price, how much would it cost to buy his previous bundle?

iv) If given that much, what would Solomon buy? How would his utility compare to its original level?

v) How much money would Solomon have to be given to make him as happy as he was before the price change?

vi) If given that much, what would he choose to buy?