jen spends all her income on shortbread cookies s


Jen spends all her income on shortbread cookies (S) and cupcakes (C). Her utility function is given by: U(S,C) = S +2C. Suppose that Jen has an income of $10 and that a cupcake costs $2 (pC = 1).
b.Derive Jen's demand for shortbread cookies for pC = 2, Y = 10 and an arbitrary pS. Sketch the demand curve on a graph.
c. Derive the Engel curve for shortbread cookies, assuming pC > 2pS, and sketch on a graph.

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Macroeconomics: jen spends all her income on shortbread cookies s
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