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Krissy spends all her income on holiday lights (L) and fishing bait (B). Lights are priced at $2, while a pack of bait costs $1. Assume that Krissy has $30 to spend and her utility function can be represented as: U(L,B) = L2B? (Assume B is on the y-axis when graphing). What is the price ratio? Note: enter number(s) only and convert any fraction to a decimal.

Krissy spends all her income on holiday lights (L) and fishing bait (B). Lights are priced at $2, while a pack of bait costs $1. Assume that Krissy has $30 to spend and her utility function can be represented as: U(L,B) = L2B? (Assume B is on the y-axis when graphing). What is the price ratio? Note: enter number(s) only and convert any fraction to a decimal.

ENGR.ECONOMIC ANALYSIS
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 12 Krissy spends all her income on holiday lights (L) and fishing bait (B). Lights are priced at $2, while a pack of bait costs $1. Assume that Krissy has $30 to spend and her utility function can be represented as: UL,B) = L?B? (Assume B is on the y-axis when graphing). What is the price ratio? Note: enter number(s) only and convert any fraction to a decimal. QUESTION 13 Krissy spends all her income on holiday lights (L) and fishing bait (B). Lights are priced at $2, while a pack of bait costs $1. Assume that Krissy has $30 to spend and her utility function can be represented as: UL,B) = L?B? (Assume B is on the y-axis when graphing). What is the optimal (utility maximizing) quantity of holiday lights Krissy should buy? Note: enter number(s) only and convert any fraction to a decimal.
Transcribed Image Text:QUESTION 12 Krissy spends all her income on holiday lights (L) and fishing bait (B). Lights are priced at $2, while a pack of bait costs $1. Assume that Krissy has $30 to spend and her utility function can be represented as: UL,B) = L?B? (Assume B is on the y-axis when graphing). What is the price ratio? Note: enter number(s) only and convert any fraction to a decimal. QUESTION 13 Krissy spends all her income on holiday lights (L) and fishing bait (B). Lights are priced at $2, while a pack of bait costs $1. Assume that Krissy has $30 to spend and her utility function can be represented as: UL,B) = L?B? (Assume B is on the y-axis when graphing). What is the optimal (utility maximizing) quantity of holiday lights Krissy should buy? Note: enter number(s) only and convert any fraction to a decimal.
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