Problem
The utility function that Jane receives by consuming food and clothing is given by U= F*C.
1) In a diagram, draw the indifference curves associated with utility levels of 12 and 24 (measure clothing along the horizontal axis).
2) Suppose that the price of food is $1 per unit and the price of clothing is $3 per unit, and Jane has $12 to spend. Graph the budget line that Jane faces in the diagram you have drawn for part (a).
3) From your diagram, find Jane's utility-maximising choice of food and clothing.
4) What is the MRSC,F at the point of utility maximisation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.