Assignment on excel exercise

Lucy wants carpets and paintings for her office. Her company has given her a budget of $7,200 for this purpose. Persian carpets of the size that she wants can be purchased for $900 each and paintings from a local Native American artist cost $400 each.
I need help with completing this exercise. Homework need to be submitted in excel format.

 

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Problem 8-2
Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers.

Lucy wants carpets and paintings for her office. Her company has given her a budget of $7,200 for this purpose. Persian carpets of the size that she wants can be purchased for $900 each and paintings from a local Native American artist cost $400 each.

Lucy’s Budget $7,200
Price of a Carpet $900
Price of a Painting $400
a) Use Excel to draw Lucy’s budget constraint if her budget is $7,200. Use 0, 1, 2, . . ., 8 carpets as possible quantities. Put carpets on the horizontal axis and paintings on the vertical axis.
x y
0
1
2
3
4
5
6
7
8
b) Find the values of y when U1 = 4 and when U2 = 6 for x-values of 0, 1, 2,…, 8. The utility function for carpets (x) and paintings (y) is given by U=sqrt(xy).
U1 = 4
U2 = 6
x I1 I2
1
2
3
4
5
6
7
8
Use Excel to illustrate Lucy’s utility-maximizing solution given that her budget is $7,200, the price of a carpet is $900, and the price of a painting is $400.

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