a) Graphically derive Vivi’s demand for tea when her income is $60 and the price of crumpets is $2. Do this by showing her optimal consumption (exact numbers) at three different values for the price of tea. (b) What is the formula for Vivi’s demand function for crumpets when her income is $60, the price of crumpets is pC, and the price of tea is pT ? Note:-

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Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.