14.3 (0) Quasimodo consumes earplugs and other things. His utility function for earplugs x and money to spend on other goods y is given by u(x, y) = 100x - x²2 2 +y. (a) What kind of utility function does Quasimodo have? (b) What is his inverse demand curve for earplugs?. (c) If the price of earplugs is $50, how many earplugs will he consume? (d) If the price of earplugs is $80, how many earplugs will he consume? (e) Suppose that Quasimodo has $4,000 in total to spend a month. What is his total utility for earplugs and money to spend on other things if the price of earplugs is $50?.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 11SQ
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14.3 (0) Quasimodo consumes earplugs and other things. His utility
function for earplugs x and money to spend on other goods y is given by
u(x, y) = 100x
2:²
2
+y.
(a) What kind of utility function does Quasimodo have?
(b) What is his inverse demand curve for earplugs?.
(c) If the price of earplugs is $50, how many earplugs will he consume?
(d) If the price of earplugs is $80, how many earplugs will he consume?
(e) Suppose that Quasimodo has $4,000 in total to spend a month. What
is his total utility for earplugs and money to spend on other things if the
price of earplugs is $50?
Transcribed Image Text:14.3 (0) Quasimodo consumes earplugs and other things. His utility function for earplugs x and money to spend on other goods y is given by u(x, y) = 100x 2:² 2 +y. (a) What kind of utility function does Quasimodo have? (b) What is his inverse demand curve for earplugs?. (c) If the price of earplugs is $50, how many earplugs will he consume? (d) If the price of earplugs is $80, how many earplugs will he consume? (e) Suppose that Quasimodo has $4,000 in total to spend a month. What is his total utility for earplugs and money to spend on other things if the price of earplugs is $50?
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