on soda and receive Todd has $200 that he can spend bus tickets. A pack of soda costs $15. All citizens o a coupon from the government that gives people 30% off on their first 15 soda pack purchases. Bus tickets cost $10 and the government charges $2 for each purchased bus ticket. Todd's utility function is u (s, b) = 15 s + 18b s represents soda and b represents bus tickets. What is Todd's optimal consumption of soda and bus tickets? where What is Todd's optimal consumption if the government removes the quantity restriction of the coupon for soda (for example, 30% off is applied to any quantity of soda purchased)?

on soda and receive Todd has $200 that he can spend bus tickets. A pack of soda costs $15. All citizens o a coupon from the government that gives people 30% off on their first 15 soda pack purchases. Bus tickets cost $10 and the government charges $2 for each purchased bus ticket. Todd's utility function is u (s, b) = 15 s + 18b s represents soda and b represents bus tickets. What is Todd's optimal consumption of soda and bus tickets? where What is Todd's optimal consumption if the government removes the quantity restriction of the coupon for soda (for example, 30% off is applied to any quantity of soda purchased)?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.12P

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