What is the exact value of britneys indirect utility

Reference no: EM13237739

Britney is very fashionable. When she buys a new dress (D), she also needs to buy a hat (H) to match that dress and vice-versa. So, she views the two goods as perfect complements. The price of a dress is $10, the price of a hat is $6, and she has $64 to spend.

a) Write down a utility function that represents Britney's preferences over dresses and hats.

b) How many dresses and hats is she going to consume? (Hint: the first order conditions will not help; draw the budget constraint and the indifference curves and look at the highest one that intersects the budget constraint)

c) What is the exact value of Britney's indirect utility?

Reference no: EM13237739

Questions Cloud

Explain the compound is unstable and slowly decomposes : The compound is involved in the citric acid cycle for energy production within the cell. However, the compound is unstable and slowly decomposes spontaneously. Draw the decomposition products.

Clearly use expenditure approach to compute gdp : Imports 170 Undistributed corporate profits 7 Personal taxes 136 Compute each of the following approach and show your numerical calculation clearly Use Expenditure Approach to compute GDP

Research on kaizen events : Research on Kaizen events,

Explain what would the concentration be in the solution : What would the concentration (or activity) of Hg2+(aq) be in the solution if equilibrium existed between the water in soil pores, the gas and cinnabar

What is the exact value of britneys indirect utility : Britney is very fashionable. When she buys a new dress (D), she also needs to buy a hat (H) to match that dress and vice-versa. So, she views the two goods as perfect complements. The price of a dress is $10, the price of a hat is $6

Research paper on the discovery of paper : What would be a great outline for a research paper on "the discovery of paper"? as we know china invented paper so i wanted to write a paper on that.

Calculate the value of the error : Calculate the value of the error (only) with two decimal places for: (5.3 +/- 0.1) / (2.9 +/- 0.1) and (7.3 +/- 0.4) / (3 +/- 0.2)

What must the saving rate be to achieve golden rule level : Assume that a country's production function is Y = AK^.3 L^.7 . The ratio of capital to output is 3, the growth rate of output is 3 percent, and the depreciation rate is 4 percent. Capital is paid its marginal product.

Explain the term symbols for the ground state configuration : Compare the term symbols for the ground state configuration and the first excited state configuration of He. Which term symbol represents the lowest energy state for each configuration

User Account

All Pages