Find linda optimal consumption bundle

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Linda loves shoes (S) and fresh juice (J). Her utility function is given by: U(x,y) = 20SJ It costs Linda $80 to buy a pair of shoes and $8 for a cup of fresh juice. Her monthly income is $1600. 

a) Find the MRS for Linda for any given bundle (S, J).

b) Find Linda's optimal consumption bundle.

c) Suppose the price of juice doubles. How much income is required so that the consumer is able to purchase the same consumption bundle as in part b.

d) Derive Linda's demand curve for juice.

Reference no: EM131606978

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