Madison has an income of $50,which she spends on Pizza (P)and soft drinks (S).Her marginal rate of substitution is MRSPS = S/P.The price of pizza (PP)is $5 and the price of soft drinks (PS)is $2.50.Finally,the formula for her indifference curves is given by
S = 2U/P
(a)Find Madison's uncompensated demand curve for pizza.
(b)Find Madison's compensated demand curve for pizza.
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