Final answer:
David's demand curve for gasoline can be derived by maximizing his utility function subject to his budget constraint. The curve cannot be specified numerically without additional information on prices and income but will typically be a downward-sloping line on a graph showing the inverse relationship between price and quantity demanded.
Step-by-step explanation:
The student's question involves the derivation of a demand curve for gasoline in the context of David's utility function U (q₁, q₂) = 60q₁⁰.² q₂⁰.⁸, where q₁ is the quantity of gasoline, and q₂ is the quantity of bread. To find David's demand curve for gasoline, we have to utilize the concept of utility maximization subject to a budget constraint, which is Income (Y) = p₁q₁ + p₂q₂.
Applying the method of Lagrange multipliers or the substitution method to this utility maximization problem would provide us with a demand function for gasoline in terms of its price p₁, the price of bread p₂, and David's income Y. Unfortunately, without additional details, such as the exact prices and David's income, we cannot provide a numerical demand function.
However, with the given information, we can explain the general approach and clarify that the demand for gasoline will be a function of these variables. The demand curve will be downward sloping, representing the inverse relationship between the price of gasoline and the quantity demanded. For a graphical representation, if we had the specific demand function, we could plot this relationship with price on the vertical axis and quantity on the horizontal axis.