Alice is going to Wonderland and needs supplies. She has $100 and can buy only walnuts and raisins. The price of walnuts is $20 per kg and of raisins is $10 per kg. Alice's preferences are described by the utility function u(x1,x2)=min{0.5*x1+2*x2,x1}, where x1 is the quantity of walnuts, and x2 is the quantity of raisins. Given her budget constraint and preferences, if Alice were offered a choice only among the bundles listed below, which one would she buy? Выберите один ответ: a. x1=3, x2=4 b. x1=2, x2=0.5 c. x1=4, x2=3 d. x1=1, x2=8

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter6: Consumer Choice Theory
Section: Chapter Questions
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Alice is going to Wonderland and needs supplies. She has $100 and can buy only walnuts and raisins. The price of walnuts is $20 per kg and of raisins is $10 per kg. Alice's preferences are described by the utility function u(x1,x2)=min{0.5*x1+2*x2,x1}, where x1 is the quantity of walnuts, and x2 is the quantity of raisins. Given her budget constraint and preferences, if Alice were offered a choice only among the bundles listed below, which one would she buy? Выберите один ответ: a. x1=3, x2=4 b. x1=2, x2=0.5 c. x1=4, x2=3 d. x1=1, x2=8
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