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Consider Three Consumers. All three buy bread (B) and Cheese (C), and no other goods. The price of bread (B) is $1 per loaf, and the price of cheese (C) is $2 per pound. Each consumer has a weekly budget of $60. Given the information below, find the utility maximizing combination of bread and cheese for each consumer and each consumers level of utility.
a. Stephanie's utility function is U(B,C) = B^1/2 C^1/2.
b. Evans utility function is U(B,C) = min(B,C). In other words, he likes 1 loaf of bread with 1 pound of cheese, and likes no other combination.
c. Ian doesnt care whether he has bread of cheese as long as he has some food. These goods are perfect substitutes for him and his utility function is U(B,C) = B + C.
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