Sample problems Use the following information to answer all of the questions. Ahmad goes to a pizza place to for dinner. He has not eaten all day and feels very hungry. How much he values each slices of pizza is given in the table below. #of slice WIP $12 $9 $6 $3 $0 2. 3 ($2) Ahmad prefers to have pizza along with soda drinks. He thinks that they are a match made in heaven. He values each can of soda as the following: t of can WTP 1 $4 $3 2 $1 $0 4 ($4) Two options are available, but modified There are two available options at the pizza place; buy per slice or all-you-can-eat option. Ahmad can either pay $2 per slice of pizza and $2 per soda can or pay $15 for the AYCE option that includes free flow drinks. 1. If Ahmed decides on the AYCE option, how many slices of pizza and cans of soda should he get? 2. Which one is the better option for Ahmad? 3. What should the price for AYCE option be for Ahmad to be indifferent between the 2 options? English (United States) Accessibility: Investigate

Sample problems Use the following information to answer all of the questions. Ahmad goes to a pizza place to for dinner. He has not eaten all day and feels very hungry. How much he values each slices of pizza is given in the table below. #of slice WIP $12 $9 $6 $3 $0 2. 3 ($2) Ahmad prefers to have pizza along with soda drinks. He thinks that they are a match made in heaven. He values each can of soda as the following: t of can WTP 1 $4 $3 2 $1 $0 4 ($4) Two options are available, but modified There are two available options at the pizza place; buy per slice or all-you-can-eat option. Ahmad can either pay $2 per slice of pizza and $2 per soda can or pay $15 for the AYCE option that includes free flow drinks. 1. If Ahmed decides on the AYCE option, how many slices of pizza and cans of soda should he get? 2. Which one is the better option for Ahmad? 3. What should the price for AYCE option be for Ahmad to be indifferent between the 2 options? English (United States) Accessibility: Investigate

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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