Are pretzels and pepsi complements or substitues to emily

Reference no: EM132128781

Question: Emily likes pretzels and pepsi. She bought 10 bottles of Pepsi for $2 each. Her marginal utility for the tenth bottle was 12 utils. She also bought 7 bags of pretzels for $4 per bag. Her marginal utility for the seventh bag was 20 utils. Assume Emily exhausted her budget on this purchase of Pepsi and pretzels, but wanted to maximize her utility. Would she have been better off buying more Pepsi and fewer pretzels, more pretzels and less Pepsi, or was her purchase already optimal? Are pretzels and Pepsi complements or substitues to Emily?

Reference no: EM132128781

Questions Cloud

Need to give demonstration on how airtasker secure : Need to give demonstration on How Airtasker secure? Please prepare 10 slides.

Why should individuals and firms use customs brokers : Why should individuals and firms use customs brokers when importing and exporting? What are the benefits? Your post must be at least 300 words.

Strengthen cultural value of teamwork and collaboration : How might leaders use symbolic acts to strengthen a cultural value of teamwork and collaboration? How about a value of customer care and responsiveness?

What are the impacts of the differences on the national debt : What are the economic differences during the time between Bush and Obama? What are the impacts of these differences on the national debt?

Are pretzels and pepsi complements or substitues to emily : Emily likes pretzels and pepsi. She bought 10 bottles of Pepsi for $2 each. Her marginal utility for the tenth bottle was 12 utils.

Diet-related public health crises such as obesity : Are traditional American beliefs in free markets and respect for personal autonomy contributing to diet-related public health crises such as obesity-diabetes?

Explain how labour productivity is determined : Explain how labour productivity is determined. In your answer address why human capital is considered to be so vital to lifting labour productivity levels.

What is the lowest price the company : A farm equipment manufacturer has already spent $3 million in research and development to design a new model of tractor. To produce the tractors.

Reflect the impact and importance of ethics : Reflect the impact and importance of ethics in communication. This assignment is worth 150 points and due by the end of Module 5

User Account

All Pages