Anyone here take basic university economics?


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vavopy

Michael derives hsi utility from two goods - cake © and donuts (D. His utility is given by U = C*D, with MUc = D and MUd = C. He has himcome I = $120 and price of C, (Pc) = $1, and price of D (Pd) = $1 as well. What is Donalds income expansion path? What are utility maximizing C and D? Holding his himcome and Pd constant at their current values, what is Donald's demand curve for cake?

Any kick in the right direction would be appreciated :)

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