A child budget is 3 dollars and she has two options 1)ice cream 2) cake. Her utility function is u(x,y)=yx2. The first five ice cream cones are free but each additional cone will cost 1$. Cakes are 1$ at any amount. 1)Find an optimal bundle. What will happen with optimal bundle if she has $2 budget.

A child budget is 3 dollars and she has two options 1)ice cream 2) cake. Her utility function is u(x,y)=yx2. The first five ice cream cones are free but each additional cone will cost 1$. Cakes are 1$ at any amount. 1)Find an optimal bundle. What will happen with optimal bundle if she has $2 budget.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 9SQP

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please give answer step by step
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