Find camerons utility-maximizing point

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Cameron buys cheese (C) and chocolate pudding(P). His utility function is U=5C^1/4*P3/4.The price of cheese is $1, and the price of chocolate pudding is $2. Cameron's weekly snack budget is $60.

a. Find Cameron's utility-maximizing point

b. Find Cameron's compensating and equivalent variation if the price of pudding falls to $1.

Reference no: EM13898416

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