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  3. 1. liz has utility given by ?(?1,?2)=?1^7?2^3. if

1. Liz has utility given by ?(?1,?2)=?1^7?2^3. If ?1=$10,?2=$15,and I = $100, find Liz’s optimal consumption...

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Economics

1. Liz has utility given by ?(?1,?2)=?1^7?2^3. If?1=$10,?2=$15,and I = $100, find Liz’s optimal consumption of good1. (Hint: you can use the 5 step method or one of the demandfunctions derived in class to find the answer).  

a) Using the information from question 1, find Liz’s optimalconsumption of good 2.

3. Lyndsay has utility given by ??(?1,?2)=min {?1,?2}. If?1=$2,?2=$4, ? ?=$12, find Lyndsay’s optimal consumption of good 1.(Hint: this is Leontief utility).

a) Using the information from question 3, find Lyndsay’s optimalconsumption of good 2.

5. Anya has utility given by ??(?1,?2)=12?1+9?2. If ?1=$4,?2=$2,?=$20, find Anya’s optimal consumption of good (Hint: this islinear utility).

a) Using the information from question 5, find Anya’s optimalconsumption of good 2.

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