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.
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 3WNG
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F151ef907-e8fd-4ecd-9105-17e19208a238%2Fa73f66f0-5218-406c-9f4e-b97e32a3152e%2Fez7pizt_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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