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Kenza's Utility Function for Black (B) and White (W) Socks

Question 142

Essay

Kenza's utility function for black (B) and white (W) socks is U = 10B + 10W, where MUB = 10 and MUW = 10. Suppose that Kenza has $40 to spend on socks. With the price of white socks held constant at $10, graph Kenza's demand curve for black socks at $2, $4, $5, $8, $10, and $20.

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Kenza will purchase the color sock that ...

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