While visiting family in Mexico, your professor has abudget of $ 255 ($ = pesos) that he spends on tacosand tequila.The price of tacos is $ 6 and a shot of tequila is pricedat $ 16.During his visit the price of tacos changes to $ 5.Assume your professor has a Cobb-Douglas utilityfunction with (tacos) parameter a = ( 27 / 100).How many shots of tequila does your professorpurchase ?(Assume both goods are commodities.)(Answer is : 11.63)

Here we calculate number of shots purchase by professor by using the given information so the…

While visiting family in Mexico, your professor has a budget of $ 255 ($ = pesos) that he spends on tacos and tequila. The price of tacos is $ 6 and a shot of tequila is priced at $ 16. During his visit the price of tacos changes to $ 5.

While visiting family in Mexico, your professor has a budget of $ 255 ($ = pesos) that he spends on tacos and tequila. The price of tacos is $ 6 and a shot of tequila is priced at $ 16. During his visit the price of tacos changes to $ 5.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 1SQP

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Question

While visiting family in Mexico, your professor has a
budget of $ 255 ($ = pesos) that he spends on tacos
and tequila.
The price of tacos is $ 6 and a shot of tequila is priced
at $ 16.
During his visit the price of tacos changes to $ 5.
Assume your professor has a Cobb-Douglas utility
function with (tacos) parameter a = ( 27 / 100).
How many shots of tequila does your professor
purchase ?
(Assume both goods are commodities.)
(Answer is : 11.63)

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