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A consumer has a budget of M = $399 per month to spend on Funny books,...

A consumer has a budget of M = $399 per month to spend on Funny books, F, and CDS, C. The consumer`s utility derived from the purchase of these two goods is determined to be U (F, C) = 3F2 + C2 .

If PF = 3, and PC = 2

a. What is the optimal bundle of goods that the consumer will purchase?

b. How much does the consumer spend on CDs and Funny books?

c. If the price of CDs increases to PC = 4, What is the new optimal bundle?

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