Cortana loves Swedish pickled herring. Her utility function…

Questions

Cоrtаnа lоves Swedish pickled herring. Her utility functiоn is U=HX2, where H is the units of Swedish pickled herring she consumes in one month, аnd X is her expenditure on other goods in one month. The price of herring is $2 per unit. Her weekly income is $90. a. The budget constraint for Cortana is: 2H + X= 90 b. Cortana’s optimal bundle should be: X=[response3], H=[response4]) (please round to integer, please don't use a comma, i.e input 1000 instead of 1,000). (Hint: H is the units of herring she consumes) c. The government decides to support the local fishing industry and offers Cortana $60 coupon which can be only used to purchase pickled herring. How many units of herring should Cortana purchase with the new policy? : ([res5]). d. If the government offers Cortana $60 in cash, which she can use to purchase anything, her utility will increase by [res7] compared to the scenario where the government only provides a $60 coupon.

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