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Question: 6 points tom decides to be a collector of ancient...

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(6 points) Tom decides to be a collector of Ancient Greek (g) and Ancient Roman () coins. He wants to e matched sets of three Greek coins and one roman coin , and he doesnt want to have any Greek coins or (a) (1 point) Draw Toms indifference curves and write his utility function. Put Greek coins on the y axis (b) (1 point) Currently, Tom has 32 dollars to spend. The prich of Romannis Pr 2 and the price of Roman coins that are not in a matched set of this size. and Roman coins on the r axis. Assune he receives utility of 3 utils from each matched coin set he has. Greek coin is Pg 2. What is the optimal allocation of Greek and utility does he achieve from this allocation? coins for Tom? How much (c) (1 point) Due to a shortage at the antiques market, the price of Roman coins increases to Pr 10 What is the new allocation of Greek and Roman coins at this price level, and what utility does Tom obtain? (d) (1 point) Luckily, Toms parents value their sons utility, and are willing to give him enough income to ensure that he has the same utility he did prior to the price dhange. How much extra money do they have to give him? (e) (1 point) Tom has a friend Jack who doesnt like mat ched sets of coins and has different preferences. His utility function is rg?. If he started with the same coin budget as Tom of 32 dollars and then faced the same price shock, what would be the decrease in his utility when the price of Roman coin increases from $2 to $4 1 point are trying to decide whether to give cash or give coin. Which friend is more likely to prefer cash? ( Tom and Jack s parents are gong to gve a gift of α1ual monetary value to both friends. They
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