Inga consumes only Noodles (N) and Salad (S). Her preferences are of the following form: U...

Inga consumes only Noodles (N) and Salad (S). Her preferences are of the following form: U (N,S)= N^4S^2

a.If her income is $100 and noodles cost $1 while Salad costs $5, what does she consume?

b. The price of noodles changes to $2. Find her new optimal bundle. The income increases to 200. Find the new optimal bundle.Are noodles a normal or inferior good?

Expert Solution

Rahul Sunny answered 11 months ago

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