2. Furiosa has a utility function of u(C, F) = 3C0.3 F where the price of C is $5, the price of F is $8, and a budget of $1200. a. Find the optimal bundle that maximizes the above utility equation. b. Suppose the price of Cincreases to $7 and the price of F decreases to $7. Find the new optimal bundle that maximizes Furiosa's utility.

2. Furiosa has a utility function of u(C, F) = 3C0.3 F where the price of C is $5, the price of F is $8, and a budget of $1200. a. Find the optimal bundle that maximizes the above utility equation. b. Suppose the price of Cincreases to $7 and the price of F decreases to $7. Find the new optimal bundle that maximizes Furiosa's utility.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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refer to question 1 but answer question 2
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