Find the numerical values of the optimal c * and h*

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Utility maximization, graphs (9 points) Suppose Becky's utility function for churros (C) and hot dogs (H) is given by U(C, H) = min(C, 4H), and she has $20 in income.

(a) Graphically identify the utility maximizing quantities of X and Y if the prices of C and H are 2 and 2, respectively. Find the numerical values of the optimal C * and H* .

(b) Graphically identify the utility maximizing quantities of X and Y if the prices of C and H are 2.5 and 10, respectively. Find the numerical values of the optimal C * and H* .

(c) Suppose the prices of C and H are pC and pH, respectively, and income is I. Find the values of the optimal C * and H* in terms of pC, pH, and I.

Reference no: EM131394778

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