1. Steve's utility is U B0.5+ Co.5, where B refers to burgers per week and C refers to pieces of cake per week. Assuming Steve has income I, and the price of a burger is PB and the price of a cake is Pe. b. Compute the income elasticity for burgers and cakes. Represent your answers in the most simplest form.

1. Steve's utility is U B0.5+ Co.5, where B refers to burgers per week and C refers to pieces of cake per week. Assuming Steve has income I, and the price of a burger is PB and the price of a cake is Pe. b. Compute the income elasticity for burgers and cakes. Represent your answers in the most simplest form.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Nh