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a. find her most preferred affordable bundle b. Jackson also likes hamburgers and figs. his preferences are U = min{H,F}. He has $400 income and faces same prices as Sandy. Find Jackson most preferred affordable bundle C. suppose the price of a box of figs falls to $5. What happens to the quantity of figs demanded by sandy and jackson? Explain. If they respone differently, explain why using the income and substitution effect concept

a. find her most preferred affordable bundle b. Jackson also likes hamburgers and figs. his preferences are U = min{H,F}. He has $400 income and faces same prices as Sandy. Find Jackson most preferred affordable bundle C. suppose the price of a box of figs falls to $5. What happens to the quantity of figs demanded by sandy and jackson? Explain. If they respone differently, explain why using the income and substitution effect concept

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Sandy likes hamburgers (H) and figs (F). She has $400 to spend on these two goods and her preferences are described by the utility function: U = HF² . The price of hamburgers is $5 and the price of a a box of figs is $15. (H is the x axis good) %3D
Transcribed Image Text:Sandy likes hamburgers (H) and figs (F). She has $400 to spend on these two goods and her preferences are described by the utility function: U = HF² . The price of hamburgers is $5 and the price of a a box of figs is $15. (H is the x axis good) %3D
a. find her most preferred affordable bundle b. Jackson also likes hamburgers and figs. his preferences are U = min{H,F}. He has $400 income and faces same prices as Sandy. Find Jackson most preferred affordable bundle c. suppose the price of a box of figs falls to $5. What happens to the quantity of figs demanded by sandy and jackson? Explain. If they respond differently, explain why using the income and substitution effect concept.
Transcribed Image Text:a. find her most preferred affordable bundle b. Jackson also likes hamburgers and figs. his preferences are U = min{H,F}. He has $400 income and faces same prices as Sandy. Find Jackson most preferred affordable bundle c. suppose the price of a box of figs falls to $5. What happens to the quantity of figs demanded by sandy and jackson? Explain. If they respond differently, explain why using the income and substitution effect concept.
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