) Illustrate your answer to (iii) on a graph, include your indifference curve, the budget constraint, the slope of the budget constraint, and all labels.
) Illustrate your answer to (iii) on a graph, include your indifference curve, the budget constraint, the slope of the budget constraint, and all labels.
Chapter19: Building Theories To Explain Eveday Life: From Observations To Questions To Theories To Predictions
Section19.10: Observation/thought 8: People Who Give To Others Often Complain That They End Up Giving Too Much
Problem 3ST
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CAN YOU ANSWER PART 4 (iv) PLEASE??
Suppose you have preferences for pizza (z) and soda (d). The price of pizza, pz = 5.00 and the price of soda,
pd = 2.00. You have an income of I = 20 that you can spend on pizza and soda every week.
Suppose you are equally happy consuming either 3 pieces of pizzas or 2 cups of soda.
•(i) What type of preference do you have for pizzas and sodas?
•(ii) Derive the utility function for pizza and sodas
•(iii) Solve for your optimal consumption of pizza and sodas
•(iv) Illustrate your answer to (iii) on a graph, include your indifference curve, the budget constraint,
the slope of the budget constraint, and all labels.
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