1) Joe has a utility function of U-B p4 where B- the number of burgers consumed and P= number of pizzas consumed. The price of a slice of pizza is $2 while the burger is $4. Calculate the utility maximizing quantity of pizza and burgers that joe will buy if he has an income of$200. Show all the steps in your calculations. You need to start your calculations from the utility maximizing condition (MRT-MTS) to get full credit.

1) Joe has a utility function of U-B p4 where B- the number of burgers consumed and P= number of pizzas consumed. The price of a slice of pizza is $2 while the burger is $4. Calculate the utility maximizing quantity of pizza and burgers that joe will buy if he has an income of$200. Show all the steps in your calculations. You need to start your calculations from the utility maximizing condition (MRT-MTS) to get full credit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1) Joe has a utility function of
U- B6 p4
where B= the number of burgers consumed and P= number of pizzas consumed.
The price of a slice of pizza is $2 while the burger is $4.
Calculate the utility maximizing quantity of pizza and burgers that joe will buy if he has an income of$200. Show all
the steps in your calculations. You need to start your calculations from the utility maximizing condition (MRT-MTS) to
get full credit.

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