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Suppose That Bella's Utility Function from Bananas (B) and Chocolate

question 65

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Suppose that Bella's utility function from bananas (B) and chocolate (C) is Suppose that Bella's utility function from bananas (B) and chocolate (C) is   Her budget is $15, and the price of chocolate is $3. a. Derive Bella's demand for bananas. b. Suppose that Bella's budget increases to $20. Derive her new demand curve for bananas. Are bananas a normal or inferior good for Bella? Explain. Her budget is $15, and the price of chocolate is $3.
a. Derive Bella's demand for bananas.
b. Suppose that Bella's budget increases to $20. Derive her new demand curve for bananas. Are bananas a normal or inferior good for Bella? Explain.


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