Fill This Form To Receive Instant Help

#### Question 11 Oprah has a daily budget of £20 to spend on fruit & vegetables (x) and meat (Y)

###### Sociology

Question 11 Oprah has a daily budget of £20 to spend on fruit & vegetables (x) and meat (Y). Fruit & vegetables are priced at £1 while meat is sold at £4 per unit. Her utility function is U(X,Y) = 5X5Ys, where MUX @* and MU, = 4 () 4 (a) Explain how Oprah's tastes over fruit & vegetables and meat can be translated into indifference curves. Sketch some of these in a diagram with X on the horizontal axis and Y on the vertical axis. What determines their slope? [5 marks] (b) . ind Oprah's optimal consumption decision and indicate it in your diagram. What is Oprah's utility from her chosen bundle? [7 marks] (c) The government launches a '5 a day' campaign recommending that people eat 5 portions of fruit & vegetables every day. Will Oprah follow the government's advice? Explain why, or why not. If not, can Oprah be incentivised to do so? [10 marks] (d) Oprah's friend Meghan recommends a vegan diet. Will Oprah follow Meghan's advice? Explain why, or why not. If not, can Oprah be incentivised to do so? [8 marks]