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:
Cutoff Hour
A specified deadline by which a certain action must be taken or completed.
UCC
The Uniform Commercial Code is an extensive compilation of laws that regulate commercial transactions throughout the United States.
Checks
Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or to a specified person.
Compliance
Adhering to rules, standards, or laws, or the act of following orders, guidelines, or requests from others.
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