Suppose Karpov also enjoys eating nuts and berries. His utility function is u(c1,c2)=min{c1+2c2,2c1+c2}u(c1,c2)=min{c1+2c2,2c1+c2} where c1c1 is nuts and c2c2 is berries. However, Karpov faces different prices to Magnus. The prices he faces for nuts and berries are 3 and 2 respectively. Given his income of 10, how many units of nuts and berries does he consume? At what prices will Karpov only consume nuts and no berries? And, at what prices will he only consume berries and no nuts? Find all price and income combinations where Karpov will choose to consume equal quantities of berries and nuts.

Suppose Karpov also enjoys eating nuts and berries. His utility function is u(c1,c2)=min{c1+2c2,2c1+c2}u(c1,c2)=min{c1+2c2,2c1+c2} where c1c1 is nuts and c2c2 is berries. However, Karpov faces different prices to Magnus. The prices he faces for nuts and berries are 3 and 2 respectively. Given his income of 10, how many units of nuts and berries does he consume? At what prices will Karpov only consume nuts and no berries? And, at what prices will he only consume berries and no nuts? Find all price and income combinations where Karpov will choose to consume equal quantities of berries and nuts.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 5SQ

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