Suppose that one of your friends does not care if she consumes spaghetti (S) or noodle (N). She wants toconsume either two-dish spaghetti or two-dish noodle or any combination of both which adds up to twodishes.(i) Write the utility function of your friend to represent his preferences.(ii) Draw couple of indifference curves of your friend on graph with appropriate labels.(iii) Denote prices as Pn, Ps; income as M. If Pn < Ps, then determine the demand function of your friend foreach product as a function of prices and income. b) Suppose that one of your friends does not care if she consumes spaghetti (S) or noodle (N). She wants toconsume either two-dísh spaghettí or two-dish noodle or any combínation of both which adds up to twodishes.(i) Write the utility function of your friend to represent his preferences.(ii) Draw couple of indifference curves of your friend on graph with appropriate labels.(iii) Denote prices as Pn, Ps; income as M. If Pn < Ps, then determine the demand function of your friend foreach product as a function of prices and income.

When the price of S is greater than the price of pri9ce of N, then the person consumes only the good…

Answered: Suppose that one of your friends does…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.4P

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Suppose that one of your friends does not care if she consumes spaghetti (S) or noodle (N). She wants to
consume either two-dish spaghetti or two-dish noodle or any combination of both which adds up to two
dishes.
(i) Write the utility function of your friend to represent his preferences.
(ii) Draw couple of indifference curves of your friend on graph with appropriate labels.
(iii) Denote prices as Pn, Ps; income as M. If Pn < Ps, then determine the demand function of your friend for
each product as a function of prices and income.

b) Suppose that one of your friends does not care if she consumes spaghetti (S) or noodle (N). She wants to
consume either two-dísh spaghettí or two-dish noodle or any combínation of both which adds up to two
dishes.
(i) Write the utility function of your friend to represent his preferences.
(ii) Draw couple of indifference curves of your friend on graph with appropriate labels.
(iii) Denote prices as Pn, Ps; income as M. If Pn < Ps, then determine the demand function of your friend for
each product as a function of prices and income.

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