Casper Consumes Cocoa and Cheese

question 63

Essay

Casper consumes cocoa and cheese.Cocoa is sold in an unusual way.There is only one supplier, and the more cocoa you buy from him, the higher the price you have to pay per unit.In fact y units of cocoa will cost Casper y² dollars.Cheese is sold in the usual way at a price of 2 dollars per unit.Casper's income is 20 dollars and his utility function is U(x, y)= x + 2y, where x is his consumption of cheese and y is his consumption of cocoa.
a.Sketch Casper's budget set and shade it in.
b.Sketch some of his indifference curves and label the point that he chooses.
c.Calculate the amount of cheese and the amount of cocoa that Casper demands at these prices and this income.

---

Definitions:

Range Of Motion

The comprehensive limit of motion attainable by a joint, usually defined by the extent of its extension and flexion.

Physical Fitness

A condition of physical wellness and overall health obtained by consistent exercise, appropriate nourishment, and sufficient sleep.

Minimum Intensity

The lowest level of effort or force required to begin to produce a desired effect or outcome, often used in the context of physical activity or exercise.

Aerobic Exercise

Physical activity that uses large muscle groups, can be maintained continuously, and is rhythmic in nature. It improves the efficiency of the cardiovascular and respiratory systems in delivering oxygen to the body.