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Question: varietal wine c she allocates 1 to these two each...

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varietal wine (c). She allocates $1 to these two each month, and her utility is: U(f, c) = f2/3c1/3. The price per bottle of these wines are pf and pe. a) Write down Mrs Smith (constrained) utility maximization problem. Solve for the demands) (b) what is the value function, V-V(ру.ДМ (indirect utility) (c) Now, replace V in (b) with U and I with E, then write E as a function of Pf,pe and U. (Expenditure function) (d) Verify that (c) is indeed the expenditure function by solving Mrs Smiths Dual Problem

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