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.
Definitions:
Creditworthy Corporate
A company deemed reliable in repaying debts, often assessed through credit ratings.
Transactions Demand
The demand for money or assets that can be quickly converted into money for the sake of everyday transactions.
Economic Reason
The underlying rationale or motive behind financial decisions or actions, often based on maximizing efficiency or profit.
Transactions Demand
The need to hold money for the purpose of conducting transactions in the short term.
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