Clara’s utility function is u(x, y ) = (x + 2)(y + 1), where x is her consumption of good x and y is her consumption of good y . (a) write an equation for clara’s indifference curve that goes through the point (x, y ) = (2, 8). y = on the axes below, sketch clara’s indifference curve for u = 36. y 16 12 8 4 0 4 8 12 16 x (b) suppose that the price of each good is 1 and that clara has an income of 11. draw in her budget line. can clara achieve a utility of 36 with this budget?

Garcia industries has sales of $200,000 and accounts receivable of $18,500, and it gives its customers 25 days to pay. the industry average dso is 27 days, based on a 365-day year. if the company changes its credit and collection policy sufficiently to cause its dso to fall to the industry average, and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant? a. $241.45b. $254.16c. $267.54d. $281.62e. $296.44