Joe is a smoker. He has a utility function for cigarettes smoked indoors (q) and a composite good (q2) given by U(q1.92) = 5q10.4 + q2. Joe's income is $1,000 and faces prices p1 = 3 and p2 = 1. The government is planning to ban indoor smoking. How much money would we have to give Joe to compensate him for this ban? !!

Joe is a smoker. He has a utility function for cigarettes smoked indoors (q) and a composite good (q2) given by U(q1.92) = 5q10.4 + q2. Joe's income is $1,000 and faces prices p1 = 3 and p2 = 1. The government is planning to ban indoor smoking. How much money would we have to give Joe to compensate him for this ban? !!

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter5: Consumer Choice: Individual And Market Demand

Section: Chapter Questions

Problem 1TY

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please argunt !!! thank you

Joe is a smoker. He has a utility function for cigarettes smoked indoors (q1) and a
composite good (q2) given by U(q1,92) = 5q10.4 + q2. Joe's income is $1,000 and faces
prices p1 = 3 and p2 = 1. The government is planning to ban indoor smoking. How
much money would we have to give Joe to compensate him for this ban?
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