Question 4 Susan loves sandwiches and lemonade. Her utility functions is U (s, 1) = min{s²+ 212, 2s2 +12), where s is her consumption of sandwiches and I is her consumption of cups of lemonade. a. Draw Susan's indifference curve along which her utility is 300 b. How many sandwiches and cups of lemonade Susan will consume if she has $20 and price of a sandwich and a cup of lemonade are $2 and $4, respectively.
Question 4 Susan loves sandwiches and lemonade. Her utility functions is U (s, 1) = min{s²+ 212, 2s2 +12), where s is her consumption of sandwiches and I is her consumption of cups of lemonade. a. Draw Susan's indifference curve along which her utility is 300 b. How many sandwiches and cups of lemonade Susan will consume if she has $20 and price of a sandwich and a cup of lemonade are $2 and $4, respectively.
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.4P
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Transcribed Image Text:Question 4
Susan loves sandwiches and lemonade. Her utility functions is U (s, 1) = 1
min{s²+
212, 2s²+1²}, where s is her consumption of sandwiches and I is her consumption
of cups of lemonade.
a. Draw Susan's indifference curve along which her utility is 300
b. How many sandwiches and cups of lemonade Susan will consume if she
has $20 and price of a sandwich and a cup of lemonade are $2 and $4,
respectively.
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