Unformatted text preview: 5. Besanko, 2.9, p. 66. 6. Besanko, 3.1, p. 94. 7. Given the Adam Duritz utility function between CD’s (C) and hard candy (H) is 2 1 2 1 H C CH U = = , a. Sketch Adam’s 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 Adam’s 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, Adam, Besanko, Hard Candy, Adam Duritz

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