Part 1: Utility Maximization Bart and Maggie are Pitt students who are allocating their budget for carrying bags between plastic bags, which cost $0.25 each, and the Pitt ByoBag, which costs $6 each. They each have a budget of $18 to cover the cost of carrying bags over the 30 week semester. MAGGIE (Budget = $18) Byellag Total MU Ulty Plastic Bag Total MU Uslity Quantity MUS Quantity MUS 299 144 24 00 4.00 200 100 10 40 35 20 1000 200 100 075 144 4000 24 12 12 24 4.00 3.00 BART (Budget = $18) %3D Byelags Total MU Uslity Mlastic Bag Total Quantity MUS Quantity MUS 25) MU 12 12 2.00 150 6.00 36.00 12 24 144.00 3.00 250 21 NO00 95.00 0625 27 30 100 050 48 105 00 200 1. Find the budget equation for each student. 2. Draw the budget line for each student.

Part 1: Utility Maximization Bart and Maggie are Pitt students who are allocating their budget for carrying bags between plastic bags, which cost $0.25 each, and the Pitt ByoBag, which costs $6 each. They each have a budget of $18 to cover the cost of carrying bags over the 30 week semester. MAGGIE (Budget = $18) Byellag Total MU Ulty Plastic Bag Total MU Uslity Quantity MUS Quantity MUS 299 144 24 00 4.00 200 100 10 40 35 20 1000 200 100 075 144 4000 24 12 12 24 4.00 3.00 BART (Budget = $18) %3D Byelags Total MU Uslity Mlastic Bag Total Quantity MUS Quantity MUS 25) MU 12 12 2.00 150 6.00 36.00 12 24 144.00 3.00 250 21 NO00 95.00 0625 27 30 100 050 48 105 00 200 1. Find the budget equation for each student. 2. Draw the budget line for each student.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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