Suppose a person has $8.00 to spend only on pears and watermelon. Pears cost $0.40 each, an Watermelons cost $0.10 each. Ana has preferences for Pears (P) and Watermelon (W) given Utility =VPW %3D a IfP=5 and W= 80, what will utility be? b. IfP = 10, what value for W will provide the same utility as in part a? c. IfP = 20, what value for W will provide the same utility as in parts a and b? d. Graph the indifference curve implied by parts a through c.
Suppose a person has $8.00 to spend only on pears and watermelon. Pears cost $0.40 each, an Watermelons cost $0.10 each. Ana has preferences for Pears (P) and Watermelon (W) given Utility =VPW %3D a IfP=5 and W= 80, what will utility be? b. IfP = 10, what value for W will provide the same utility as in part a? c. IfP = 20, what value for W will provide the same utility as in parts a and b? d. Graph the indifference curve implied by parts a through c.
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 3WNG
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