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Question - Sheila enjoys both magazines (x) and movies (y) and her preferences over these two goods can be represented by the utility function U(x,y) = y + 3ln x where x represents the number of magazines and y represents the number of movie tickets.
a) Given Sheila's preferences find her demand functions for magazines (x) and movie tickets (y).
b) Suppose that the price of a magazine is $3, the price of a movie is 10 and her income is 60. Find her best bundle. In the indifference curve diagram illustrate her best bundle at these prices.
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