Sandy receives utility from consuming berries (X) and nuts (Y) as given by utility function u(X,Y) = XY. The price of berries is $9 per box and the price of nuts is $8 per pack. She spends her entire income to buy 17 boxes of berries and 62 packs of nuts. Therefore, compared to her optimal bundle, she is currently consuming (too many/not enough/just the right amount of) berries. Please note that, as usual, we allow goods to be divisible, i.e. Sandy's optimal bundle could consist of, for example, 4.2 boxes of berries and 3.7 packs of nuts. Please subrnit: 1 for too many • 1 for not enough O for just the right amount of
Sandy receives utility from consuming berries (X) and nuts (Y) as given by utility function u(X,Y) = XY. The price of berries is $9 per box and the price of nuts is $8 per pack. She spends her entire income to buy 17 boxes of berries and 62 packs of nuts. Therefore, compared to her optimal bundle, she is currently consuming (too many/not enough/just the right amount of) berries. Please note that, as usual, we allow goods to be divisible, i.e. Sandy's optimal bundle could consist of, for example, 4.2 boxes of berries and 3.7 packs of nuts. Please subrnit: 1 for too many • 1 for not enough O for just the right amount of
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 6QFR
Related questions
Question
Transcribed Image Text:Sandy receives utility from consuming berries (X) and nuts (Y) as given by utility function
u(X,Y) = XY. The price of berries is $9 per box and the price of nuts is $8 per pack.
She spends her entire income to buy 17 boxes of berries and 62 packs of nuts.
Therefore, compared to her optimal bundle, she is currently consuming (too many/not enough/just
the right amount of) berries.
Please note that, as usual, we allow goods to be divisible, L.e. Sandy's optimal bundle could consist of. for
example, 4.2 boxes of berries and 3.7 packs of nuts.
Please subrnit:
1 for too many
• 1 for not enough
O for just the right amount of
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
