Utility function that represents britneys preferences

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Reference no: EM1320548

Q. Microeconomic Theory.

Britney is very fashionable. When she buys a new dress (D), she also needs to buy a hat (H) to match that dress also vice-versa. So, she views the 2 goods as perfect complements. The price of a dress is $10, the price of a hat is $6 also she has $64 to spend.

a) Write down a utility function that represents Britney's preferences over dresses also hats.

b) Elucidate how many dresses also hats are she going to consume? (Hint: the 1st order conditions will not help; draw the budget constraint also the indifference curves also look at the highest one that intersects the budget constraint)

c) Illustrate what is the exact value of Britney's indirect utility?

Reference no: EM1320548

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