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Suppose Milton has $50 to be divided between corn and beans and that the price of...

Suppose Milton has $50 to be divided between corn and beans and that the price of beans is $0.50 per pound. What will be the relationship between the price of corn and the amount of corn

he will buy if U=log Qc +4*log Qb, where U is his utility, Qc is the quantity of corn he consumes (in pounds), and Qb is the quantity of beans he consumes (in pounds)? Calculate the price elasticity of Milton’s demand for corn.

Assume that you are the manager for a firm that sells corn and Milton can buy corn only from you. What can you say about the change in total revenue that your firm can get from Milton when there is an increase in price for corn?

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