Problem
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.
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.