Huang is determining how much Coke and Pepsi he will buy. Use the information in italics to answer th bolded question below. • Huang's preferences for Coke (C) and Pepsi (P) are represented by the following utility function: U = 2C + 3P • Huang has $12 to spend on soft drinks. • The price of Coke (P) is $0.50/can. • The price of Pepsi (Pp) is $1.00/can. Without considering prices, what type of soft drink does Huang prefer.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
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Huang is determining how much Coke and Pepsi he will buy. Use the information in italics to answer the
bolded question below.
• Huang's preferences for Coke (C) and Pepsi (P) are represented by the following utility function:
• Huang has $12 to spend on soft drinks.
• The price of Coke (P) is $0.50/can.
• The price of Pepsi (Pp) is $1.00/can.
Without considering prices, what type of soft drink does Huang prefer.
Huang always prefers Coke
U = 2C + 3P
Huang always prefers Pepsi
Huang is indifferent between both Pepsi and Coke
Huang's preference depends on how many cans he has purchased of either soft drink.
Transcribed Image Text:Huang is determining how much Coke and Pepsi he will buy. Use the information in italics to answer the bolded question below. • Huang's preferences for Coke (C) and Pepsi (P) are represented by the following utility function: • Huang has $12 to spend on soft drinks. • The price of Coke (P) is $0.50/can. • The price of Pepsi (Pp) is $1.00/can. Without considering prices, what type of soft drink does Huang prefer. Huang always prefers Coke U = 2C + 3P Huang always prefers Pepsi Huang is indifferent between both Pepsi and Coke Huang's preference depends on how many cans he has purchased of either soft drink.
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