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There are two consumers on the market : Jim and Donna. Jim's utility function is U(x,y)=xy, with associated marginal utility function MUx=y and MUy=x. Donna's utility function is U(x,y)=x^2 y ,and MUx=2xy,MUy=x^2. Income of jim is Ij=100 and income of Donna is Id=150
(a) Find optimal basket of jim and donna when price of y is Py=1, and price of x is P.
(b) On separate graphs plot jim's and donna's demand schedule for x for all value of P.
(c) Compute and plot aggregate demand when jim and donna are the only consumer.
(d) Plot aggregate demand when there is one more consumer that has identical utility function and income as donna.
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