Find Alonso's optimal consumption and utility at these prices and income. gc = gc 20, 9p = о дс O gc = = 10, gp = 20, V = 670 = 30, gp = 10, V = 800 20, V = 750 40, gp = 30, V = 825
Find Alonso's optimal consumption and utility at these prices and income. gc = gc 20, 9p = о дс O gc = = 10, gp = 20, V = 670 = 30, gp = 10, V = 800 20, V = 750 40, gp = 30, V = 825
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section20.1: Utility Theory
Problem 2ST
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IMPORTANT: Pc=2 , Pp=4, I=80
Transcribed Image Text:Find Alonso's optimal consumption and utility at these prices and income.
gc =
gc 20, 9p =
о дс
O gc
=
=
10, gp = 20, V = 670
=
30, gp =
10, V = 800
20, V = 750
40, gp = 30, V = 825
Transcribed Image Text:Alonso has preferences for sport cars (C) and paella (P) given by the utility function
U(C, P) = 4CP. The prices for C and P are, respectively, pc and pp. In what
follows, do not worry if the results are not integers.
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