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Question: question set 1 a when jo makes egg sandwiches he...

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Question Set 1 A) When Jo makes egg sandwiches, he uses exactly 2 eggs (E) and 2 slices of bread (S) in each sandwich, for a utility of 7. What type of utility curve would this be? What would be Jos utility function and marginal utilities? Graph indifference curves for utilities of 7 and 14. B) Answer the following: I. When the price of sand increased by 10% this winter, stores starting stocking and selling 3% more sand. Calculate and interpret this elasticity. How price sensitive are these stores and why? 2. When Wendys increased the price of their ice cream by 2%, sales of fries decreased by 4%. Calculate the appropriate elasticity and explain the relationship between ice cream and fries at Wendys.

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