Someone derives equal satisfaction

Assignment Help Business Economics

Reference no: EM13896052

Someone derives equal satisfaction from seeing 3 movies or 1 play. His tastes therefore can be represented by U= M+3P. If he has $160 each period in her theatre-going (movie and play) budget, and the price of a movie is $8 while the price of a play is $20, then the number of movies she will see each period is? The answer is 0, is there anyone can explain why?

Reference no: EM13896052

Questions Cloud

Describe the relationship between pai and hemi : Describe the relationship between Pai and Hemi

Old office building with an estimated remaining service life : Your firm is considering purchasing an old office building with an estimated remaining service life of 25 years. Recently, the tenants signed a long-term lease, which leads you to believe that the current rental income of $300,000 per year will remai..

What is the effect of search cost on equilibrium prices : What is the effect of search cost on equilibrium prices? In particular, what happens if all consumers have positive search costs?

Case study how about a 900 percent raise : Case Study How About a 900 Percent Raise? Read the above case study. Using the material you have acquired from the chapters, answer the questions at the end of the case study in at least 500 words.

Someone derives equal satisfaction : Someone derives equal satisfaction from seeing 3 movies or 1 play. His tastes therefore can be represented by U= M+3P. If he has $160 each period in her theatre-going (movie and play) budget, and the price of a movie is $8 while the price of a play i..

Draw the budget constraints-indifference curves : Draw the budget constraints, indifference curves, and the income consumption curve for a good (bagels) that has an income elasticity that is perfectly inelastic on horizontal axis, and another normal good on (salads) on the vertical axis.

Discuss possible effects of persuasive advertising : Consider informative advertising about a product's existence. Does an increase in the advertising cost function necessarily lead to lower profits? Discuss possible effects of persuasive advertising under imperfect competition.

What is the primary source of revenue : What is the primary source of revenue for the Federal government and what is the largest part of the spending at the Federal level?

What is the probability of two ones in 2 rolls of a die : What is the probability of Two ones in 2 rolls of a die and Three tails in 3 ?ips of a coin?

User Account

All Pages