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Unformatted text preview: 5. Besanko, 2.9, p. 66. 6. Besanko, 3.1, p. 94. 7. Given the Adam Duritz utility function between CDs (C) and hard candy (H) is 2 1 2 1 H C CH U = = , a. Sketch Adams indifference curve for U=5, U=10 and U=20. b. Suppose Adam has $200 to spend and that CDs cost $5 and hard candy cost $20. Draw Adams budget constraint on the same graph as his indifference curves. c. Suppose Adam spends all his money on hard candy. How many can he buy and what is his utility? d. If Adam buys 5 hard candies, how many CDs can be buy? What is his utility? 8. Besanko, 5.1, p. 180....
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 Summer '10
 CARSON
 Economics, Utility

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