abby is a single mom with a weekly budget of $100. She can spend her weekly income on food and diapers for her son. Price of food is $1 and price of a diaper is 50 cents. Her son needs at least 5 diapers a day, therefore she must purchase at least 35 diapers weekly. Jennifer’s utility function is U (f, d) = f 0.9d0.1, where f and d represent quantity of food and diapers, respectively. Question 1 Part a Find abbys optimal consumption bundle. Make sure to draw her budget constraint and indifference curves and clearly demonstrate your solution.
abby is a single mom with a weekly budget of $100. She can spend her weekly income on food and diapers for her son. Price of food is $1 and price of a diaper is 50 cents. Her son needs at least 5 diapers a day, therefore she must purchase at least 35 diapers weekly. Jennifer’s utility function is U (f, d) = f 0.9d0.1, where f and d represent quantity of food and diapers, respectively. Question 1 Part a Find abbys optimal consumption bundle. Make sure to draw her budget constraint and indifference curves and clearly demonstrate your solution.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQP
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Question
abby is a single mom with a weekly budget of $100. She can spend her weekly
income on food and diapers for her son. Price of food is $1 and price of a diaper
is 50 cents. Her son needs at least 5 diapers a day, therefore she must purchase
at least 35 diapers weekly. Jennifer’s utility function is U (f, d) = f 0.9d0.1,
where f and d represent quantity of food and diapers, respectively.
Question 1 Part a
Find abbys optimal consumption bundle. Make sure to draw her budget
constraint and indifference
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