Simon's utility function is U = B¹/32/3 where B, C represent the number of tea bags and strawberry cheesecakes respectiv

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Simon S Utility Function Is U B 32 3 Where B C Represent The Number Of Tea Bags And Strawberry Cheesecakes Respectiv 1 (48.31 KiB) Viewed 46 times

Simon's utility function is U = B¹/32/3 where B, C represent the number of tea bags and strawberry cheesecakes respectively that he consumes. Marginal utility for good B and Cis: MUB=B-2/3C2/3, MUC=B1/BC-1/3, (a) Write down Simon's budget constraint if tea bag cost PB per unit and strawberry cheesecake costs Pc per unit. Solve Simon's demand functions for B and C given prices PB, Pc and income m. (You should find the demand function, which relates the quantity A 3 demanded to the prices and income. In other words, write B as a function of Ps, Pc, m and write C as a function of PB, Pc, m. (b) If his income is $60 and Ps= $6 and Pc = $8, how much B and C will he buy?