Math Solutions

(See Solution) Suppose that Jessica's preferences over (wine, cheese) are represented by the utility function u(w, c)=c^2+ln c where c is the amount of

Question: Suppose that Jessica's preferences over (wine, cheese) are represented by the utility function

\[u(w, c)=c^{2}+\ln c\]

where \(c\) is the amount of cheese (in pounds), and \(w\) is the number of glasses of wine. (Assume that she does not distinguish between types of wine, or between types of cheese). It is NOT a typo that \(w\) doesn't appear on the RHS of the equation.

  1. Graph a few of her indifference curves, putting \(c\) on the horizontal axis, \(w\) on the vertical axis.
  2. If cheese costs $6/ pound, wine costs $6 / bottle, and she has $12, find her optimal consumption bundle.

Price: $2.99
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