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(Solved): 2+1=3pts Monica consumes two things: gasoline (G) and bread (B). Monica's utility function is U(G,B) ...
2+1=3pts Monica consumes two things: gasoline (G) and bread (B). Monica's utility
function is
U(G,B)=10G^(0.25)B^(0.75)
Monica's income is I and the prices of gasoline and bread are p_(G) and p_(B), respectively.
a. Derive Monica's demand curve for gasoline.
b. If the price of gasoline rises, how much does Monica reduce her consumption of gasoline?