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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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