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1. You have $100 to spend on food, housing, and clothing. Explain how their marginal utilities should be related to their respective prices to maximize utility. Generalize the result for any number of commodities.
2. Suppose Mary spends $50 per month on pizza and soda. She would like to know if she is purchasing the combination of pizza and soda that results in the highest utility possible from her $50 expenditure. She knows that she got 250 utils from the last slice of pizza she ate, and 25 utils from the last soda she drank. Pizza costs $5 per slice and soda costs $1 per can. Advise Mary on her expenditure patterns for next month.
q.peggy-sues cookies are the best in the world or so i hear. she has been offered a job by cookie monster inc. to come
What does the principle of horizontal equity state?
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Sally the Greek’s preferences can be described by the utility function U(x, y) = (2x1/2 + y1/2)2. What is equation for the indifference curve for a utility of 25? Holding utility constant at 25, if initially x = 4, how many additional (small) units o..
Which statement BEST describes the advertising industry's position on marketing to children? marketers must limit their use of advertainment in broadcast and online channels.
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