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:
Self-deception
The process of lying to oneself or convincing oneself of the truth of a false belief or idea.
Existentialists
Philosophers who focus on individual freedom, choice, and existence, emphasizing the uniqueness and isolation of the individual experience within a hostile or indifferent universe.
Cognitive-behavioral
A psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process, often used in treating a wide range of disorders.
Avoidance Behaviors
Actions undertaken to escape from or prevent exposure to unpleasant or fear-inducing stimuli.
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