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Business, 03.12.2019 02:00 haleyrene2663

Use the space below and the back to write out and clearly indicate your answers. do not use this sheet as scrap paper, but use it to neatly present your work. kanga is planning to open a new cafe in the hundred acre wood called roo's roost. kanga's business model is to set a cover charge for all-day admission to the cafe where she'll sell cups of strong coffee and the customers themselves will provide hours of entertaining caffeine-fueled conversation. each of the characters in the hundred acre wood has a utility function for coffee, x, and money spent on other things y, given by u(x, y) = 24x -x2+y. each character has at least $1,000 and can afford to buy what they want. kanga finds that coffee will cost her $2 per cup. ) calculate cach character's demand function for coffee.

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