The utility that Mary receives by consuming food F and clothing C is given by u(F, C)=F2C
Denote the by Pf the price of food, by Pc the price of clothing, and by I Mary's income.
a) What are the marginal utilities of food and clothing for Mary?
b) What are the optimality conditions for Mary, that is, what are the conditions a utility-maximizing market basket must satisfy?
c) What is the equation for Mary's price consumption curve for a variable price of food? Graph it.
d) What is Mary's food demand function? Graph it.
e) What is the equation for Mary's income-consumption curve? Graph it.
f) What is the equation for Mary's Engel curve for food? Graph it.
g) Is food a normal or inferior good?