Michael derives utility from only two goods, hamburger (Qh) and fanta (Qf). The marginal utility that Michael receives from cake (MUh) and donuts (MUf) are given as follows: MUh = Qd MUf = Qh Michael has an income of R500 and the price of hamburger (Ph) and fanta (Pf) are both R100. What is Michael's budget constraint? (1) Select one: a. 500 = 100Qh + 100Qf b. 500 = 100Ph + 100PF C. 500 = (Ph)(Qf). !3! d. 500 = (QhXQf)
Michael derives utility from only two goods, hamburger (Qh) and fanta (Qf). The marginal utility that Michael receives from cake (MUh) and donuts (MUf) are given as follows: MUh = Qd MUf = Qh Michael has an income of R500 and the price of hamburger (Ph) and fanta (Pf) are both R100. What is Michael's budget constraint? (1) Select one: a. 500 = 100Qh + 100Qf b. 500 = 100Ph + 100PF C. 500 = (Ph)(Qf). !3! d. 500 = (QhXQf)
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 1WNG
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Transcribed Image Text:Michael derives utility from only two goods, hamburger (Qh) and fanta (Qf). The marginal utility that
Michael receives from cake (MUh) and donuts (MUH) are given as follows:
MUh = Qd MUf = Qh
Michael has an income of R500 and the price of hamburger (Ph) and fanta (Pf) are both R100.
What is Michael's budget constraint?
(1)
Select one:
a. 500 = 100Qh + 100Qf
b. 500 = 100PH+ 100PF
c. 500 = (Ph)(Qf)
d. 500 = (QhXQf).
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