Ray is an employee at COB company who likes having burger (x) and Pepsi (y) during the break and these grant him a utility of: U(x.y) = /xy a) If burger cost 0.10 OR each and Pepsi costs 0.25 OR per can, how should Ray spend the 1 OR he allocates for food during the break in order to maximize utility? Answer: b) If the price of burger increase to 0.40 OR, by how much will Ray has to increase his break budget to provide him with the same level of utility he received in part (a)? Answer:

Ray is an employee at COB company who likes having burger (x) and Pepsi (y) during the break and these grant him a utility of: U(x.y) = /xy a) If burger cost 0.10 OR each and Pepsi costs 0.25 OR per can, how should Ray spend the 1 OR he allocates for food during the break in order to maximize utility? Answer: b) If the price of burger increase to 0.40 OR, by how much will Ray has to increase his break budget to provide him with the same level of utility he received in part (a)? Answer:

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 8SQP

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