Jerry's utility function. Jerry has a total of I dollars per year to spend on apples x and polo shirts y. His preferences are represented by the utility function U(y).
a) Write down Jerry's marginal utility of apples and polo shirts.
b) What are Jerry's demand functions x*(p,r,P,y,I) and y*(p,r,P,y,I)?
c) What is Jerry's optimal yearly consumption of apples and polo shirts if I = $1200, p = $4, and P = $24? Sketch an indifference curve budget line diagram and show the optimal bundle graphically.