a) What is the utility maximizing choice of food and clothing?  b) How would the utility maximizing choice change if price of clothing increased to $14? c) Given the answers to the previous parts plot a linear approximation to the demand function  for clothing.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A consumer’s preferences for food (F) and clothing (C) are given by U(F,C) = F0.2C0.8. The  price of food is $4, and the price of clothing is $8. The consumer has an income of $3600. 

a) What is the utility maximizing choice of food and clothing? 

b) How would the utility maximizing choice change if price of clothing increased to $14?

c) Given the answers to the previous parts plot a linear approximation to the demand function  for clothing.



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