Question 2 Emma's daily utility function is U = 8√R+ 4M, where R represents the pounds of rice eaten in a day and M repr

[answerhappygod]

Question 2 Emma S Daily Utility Function Is U 8 R 4m Where R Represents The Pounds Of Rice Eaten In A Day And M Repr 1 (31.67 KiB) Viewed 52 times

Question 2 Emma's daily utility function is U = 8√R+ 4M, where R represents the pounds of rice eaten in a day and M represents the money spent in other food. Marginal utility for rice and other food is: MUR = 4R-, MUM = 4. (a) Assume price for rice is pr, price for other food is pm and Emma's income is m. Derive the demand function given prices Pr Pm and income m. (b) Assume initially the price for rice is $0.5 per bowl. The price of other food is $1. Emma's daily income is $10. How much R and M will she buy? (Don't round off fractions) (c) Now the price of rice increases to $1 per bowl. The price of other food is still $1. Emma's daily income is still $10. How much R and M will she buy now?