Nadia likes spare ribs, R, and fried chicken, C. Her utility function is U = 10R°C. Her weekly income is Y = $180, which she spends on only ribs and chicken. If she pays $20.00 for a slab of ribs and $10.00 for a chicken, what is her optimal consumption bundle? Nadia's optimal consumption bundle contains 6 slabs of ribs and 6 fried chickens. (Enter numeric responses using integers.) Suppose the price of chicken increases to $20.00. How does her optimal consumption of chicken and ribs change? Nadia's optimal consumption bundle containsslabs of ribs and fried chickens. (Enter numeric responses rounded to one decimal place.)
Nadia likes spare ribs, R, and fried chicken, C. Her utility function is U = 10R°C. Her weekly income is Y = $180, which she spends on only ribs and chicken. If she pays $20.00 for a slab of ribs and $10.00 for a chicken, what is her optimal consumption bundle? Nadia's optimal consumption bundle contains 6 slabs of ribs and 6 fried chickens. (Enter numeric responses using integers.) Suppose the price of chicken increases to $20.00. How does her optimal consumption of chicken and ribs change? Nadia's optimal consumption bundle containsslabs of ribs and fried chickens. (Enter numeric responses rounded to one decimal place.)
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.7P
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