Assume x is beer and y is pizza and assumeCaspar's utility function wereU(x, y) = min{8x, 4x + 16y}. Then, if the price ofbeer were $20 and the price of pizza were $60,Caspar would demand%3D3 times as much pizza as beer.O only pizzaO 6 times as much beer as pizza5 times as much pizza as beer.4 times as much beer as pizza.

Utility shows the satisfaction or pleasure that consumers receive for consuming a good or service.…

Assume x is beer and y is pizza and assume Caspar's utility function were Ulx, y) = min{8x, 4x + 16y}. Then, if the price of beer were $20 and the price of pizza were $60, Caspar would demand %3D O 3 times as much pizza as beer. only pizza O 6 times as much beer as pizza 5 times as much pizza as beer. 4 times as much beer as pizza.

Assume x is beer and y is pizza and assume Caspar's utility function were Ulx, y) = min{8x, 4x + 16y}. Then, if the price of beer were $20 and the price of pizza were $60, Caspar would demand %3D O 3 times as much pizza as beer. only pizza O 6 times as much beer as pizza 5 times as much pizza as beer. 4 times as much beer as pizza.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.1P

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