Business
Business, 06.10.2019 05:00, tommyewall34

Homer is a street person whose preferences over the two goods he consumes, food (good 1) and fortified wine (good 2) are represented by the utility function u(x1,x2)=x1x28 (mu1=x28, and mu2=8x1x27). homer receives a pension of $100.00 per week. he can buy food at the local dispensary at a price of $4 a bucket. the local convenience store sells fortified wine at $6 a gallon jug. a. what is homer's mrs? b. assuming that homer stays sober long enough to maximize preferences, what are homer consumption levels of food and wine?

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