What type of goods are pepsi and coke for mary

Reference no: EM13222189

Suppose Mary enjoys Pepsi and Coke according to the function U(P;C) = 4C + 5P.

1)What does her utility function say about her MRS of Coke for Pepsi?

2)What do her indi§erence curves look like?

3)What type of goods are Pepsi and Coke for Mary?

4)If Pepsi and Coke each cost $1 and Mary has $20 to spend on these products, how many units of each product should she buy in order to maximize her utility?

5)Show this utility maximiz- ing combination combination of Pepsi and Coke on the graph. how would her consumption and utility maximizing bundle of Coke and Pepsi change if the price of Coke decreases to 50 cents.

Reference no: EM13222189

Questions Cloud

What are implications in economy of output being produced : Between October 2004 and 2005, real GDP in the United States increased by 3.6 percent, while nonfarm payroll jobs increased by only 1.4 percent. How is it possible for output to increase without a proportional increase in the number of workers.

What is the average time spent by each order waiting : Is it worth reallocating resources so that large orders wait an average of 0.3 weeks while small orders wait an average of 0.7 weeks before being processed?

Define the solution of riboflavin from a stock solution : Determine how you would make a 100ppb solution of riboflavin from a 50mg/L stock solution. Do the same for preparation of a 500ppb solution from a 50mg/L stock solution

How would you prepare workers for an overseas assignment : You work in Hong Kong for a Swiss-owned firm. The Swiss are known for their high uncertainty avoidance. What differences might you expect to see from your Swiss bosses compared with your Hong Kong employees?

What type of goods are pepsi and coke for mary : Show this utility maximiz- ing combination combination of Pepsi and Coke on the graph. how would her consumption and utility maximizing bundle of Coke and Pepsi change if the price of Coke decreases to 50 cents.

What was the level of government spending in second quarter : In the second quarter of 2006, household income was $13,134 billion, consumption was $9,162 billion, investment was $3,340 billion, and net exports were -$777 billion. What was the level of government spending in the second quarter of 2006

What is the amount of the three equal payments : A series of 10 annual payments of $7,500 is equivalent to three equal payments at the end of years 6, 10, and 15 at 15% interest compounded annually. What is the amount of these three equal payments

What is double counting in calculation gdp : Assume that we have a economy with no government and no capital investment that is closed to the outside world.draw a simple circular flow diagram with just firms:downstream firms that product final goods and services for consumption, and upstream..

Prepare a forecast using exponential smoothing method : Prepare a forecast through week 11 by using a five -week moving average and prepare a forecast using exponential smoothing method with α = 0.2. Forecast for week 1 was 22.

User Account

All Pages