Question: Suppose Bob's utility function over wine and books is U= 2W.B. He sets aside $1000 of his income per month to spend on his

Suppose Bob's utility function over wine and books is U= 2W.B. He

Suppose Bob's utility function over wine and books is U= 2W.B. He sets aside $1000 of his income per month to spend on his two hobbies, collecting wine and collecting books. The price of a book is $14. The initial price of wine is $30 per bottle. 1. Solve for Bob's optimal bundle. Bob's optimal bundle consists of bottles of wine and books. 2. Let M denote Bob's monthly budget on wine and books. Derive an Bob's Engel curve function for wine. Bob's demand function for wine is W = (Enter a function in terms of M).

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