Diogo has a utility function, U(q1, 92) = 91 0.8 0.2 92 where 91 is chocolate candy and q, is slices of pie. If the price of slices of pie, p2, is $2.00, the price of chocolate candy, P1, is $1.00, and income, Y, is $100, what is Diogo's optimal bundle? The optimal value of good q, is 9, = units. (Enter your response rounded to two decimal places.) The optimal value of good q, is 92 units. (Enter your response rounded to two decimal places.)

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
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Diogo has a utility function,
U(q1, 92) = 91
0.8
0.2
92
where
91
is chocolate candy and q, is slices of pie. If the price of slices of pie, p2, is $2.00, the price of chocolate candy, P1, is $1.00, and income, Y, is $100, what is
Diogo's optimal bundle?
The optimal value of good q, is
9, = units. (Enter your response rounded to two decimal places.)
The optimal value of good q, is
92
units. (Enter your response rounded to two decimal places.)
Transcribed Image Text:Diogo has a utility function, U(q1, 92) = 91 0.8 0.2 92 where 91 is chocolate candy and q, is slices of pie. If the price of slices of pie, p2, is $2.00, the price of chocolate candy, P1, is $1.00, and income, Y, is $100, what is Diogo's optimal bundle? The optimal value of good q, is 9, = units. (Enter your response rounded to two decimal places.) The optimal value of good q, is 92 units. (Enter your response rounded to two decimal places.)
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