Connie has a monthly income of $200 that she allocates between two goods:meat and potatoes.a) Suppose meat costs $4 per pound and potatoes $2 per pound.
Connie has a monthly income of $200 that she allocates between two goods:meat and potatoes.a) Suppose meat costs $4 per pound and potatoes $2 per pound. Draw herbudget constraint.b) Suppose also that her utility function is given by the equation°(±, ²) =2± + ².What combinations of meat and potatoes should she buy to maximizeher utility? (Hint:Meat and potatoes are perfect substitutes.)c) Connie’s supermarket has a special promotion. If she buys 20 pounds ofpotatoes (at $2 per pound), she gets the next 10 pounds for free. This offerapplies only after the first 20 pounds she buys. All potatoes in excess of thefirst 20 pounds (excluding bonus potatoes) are still $2 per pound. Draw herbudget constraint.d) An outbreak of potato rot raises the price of potatoes to $4 per pound. Thesupermarket ends its promotion. What does her budget constraint look likenow? What combination of meat and potatoes maximizes her utility
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