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#3. (20 points) Suppose a consumer has a budget of $12 and wish to buy two goods, Food ( F)
and Clothing (C). The price for Food is equal to $2 per unit and the price for Clothing is $1 per
unit. Find the consumer's optimal consumption basket when he has the following utility function:
(a) U(F,C)=4F+3C (b) U(F,C)=max{3F,C}.

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#3. (20 points) Suppose a consumer has a budget of $12 and wish to b.pdf

  • 1. #3. (20 points) Suppose a consumer has a budget of $12 and wish to buy two goods, Food ( F) and Clothing (C). The price for Food is equal to $2 per unit and the price for Clothing is $1 per unit. Find the consumer's optimal consumption basket when he has the following utility function: (a) U(F,C)=4F+3C (b) U(F,C)=max{3F,C}.