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Ray has $120 to spend on pizza in a week. There is only one pizza restaurant in town, and it sells two sizes of pizza: regular (R) and large (L). The regular has 20 square inches of pizza and the large has 30 square inches of pizza. Ray only cares about how many square inches of pizza he gets, and more is always better.
A) Draw indifference curves that are consistent with Ray’s preferences. (put regular pizzas on the horizontal axis)
B) If the price of a regular is $10, and the price of a large is $20, how many of each will Ray buy?
C) If the price of a regular is $10, and the price of a large is $12, how many of each will Ray buy?
D) If the price of a regular is $10, and the price of a large is $15, how many of each will Ray buy?
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