Vicky consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and the more cocoa bought, the higher the seller charges per unit. x2 units of cocoa cost x2^2 $. Cheese is sold in the usual way, 4$s per unit. Vicky's income is 80$, and utility is U(x1,x2)= x1(x2^5/2) 1)Calculate the ordinary demand of Vicky. 2)Sketch Vicky's budget set and shade it in.

Vicky consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and the more cocoa bought, the higher the seller charges per unit. x2 units of cocoa cost x2^2 $. Cheese is sold in the usual way, 4$s per unit. Vicky's income is 80$, and utility is U(x1,x2)= x1(x2^5/2) 1)Calculate the ordinary demand of Vicky. 2)Sketch Vicky's budget set and shade it in.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 3WNG

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