Would this price change affect the consumer demand for food

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A consumer has preferences for food and entertainment equal to U(qF, qE) = qF² qE. Suppose the consumer's budget is $1,000 and the unit price of entertainment is $10 Find the consumer's demand for food. Suppose the price of entertainment increased to $20. Would this price change affect the consumer's demand for food? Justify your answer. Suppose the consumer's budget increased to $1, 500. Would this change in budget affect the consumer's demand for food? Justify your answer. Now suppose the unit price of food is $5 while the unit price of entertainment remains $10. Find the expression of the Engel curve for food and plot the curve in a graph. A consumer is indifferent between tonic water and ginger ale. A bottle of tonic water costs $2. In a diagram, illustrate the consumer's price offer curve. In a separate diagram, illustrate the consumer demand curve.

Reference no: EM131425957

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