Question: 2) Mr. Doğan has 400 TL to spend. He considers buying meat whose price is 90 TL per kg.

Question: 2) Mr. Doğan has 400 TL to spend. He considers buying meat whose price is 90 TL per kg. and cheese whose price is 60 TL /kg. Given this a) What condition (equality) leads him to a utility maximization. State the condition numerically and tell clearly what each of the variables mean in that equation b) Now suppose that income of Mr. Dogan and price of meatSee the answerSee the answerSee the answer done loading

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Show transcribed image textTranscribed image text: 2) Mr. Doğan has 400 TL to spend. He considers buying meat whose price is 90 TL per kg. and cheese whose price is 60 TL /kg. Given this a) What condition (equality) leads him to a utility maximization. State the condition numerically and tell clearly what each of the variables mean in that equation b) Now suppose that income of Mr. Dogan and price of meat does not change but price of cheese is down to 30 TL /kg. Do the equality and optimal basket found in a still maximize the utility? If not; what is the new condition for utility maximization (write the condition as a numerical equation defining the variables in the equation)

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