Suppose Paul, a 3rd grader, has the following utility function over his lunch of Twinkles (t) and soda (s), utility = U(t, s) = √ts (a) If Twinkles cost $0.10 cach and soda costs $0.25 per can, how must Paul spend the $1.00 from his parents in order to maximizo his utility?
Suppose Paul, a 3rd grader, has the following utility function over his lunch of Twinkles (t) and soda (s), utility = U(t, s) = √ts (a) If Twinkles cost $0.10 cach and soda costs $0.25 per can, how must Paul spend the $1.00 from his parents in order to maximizo his utility?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 5QP
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![3. Suppose Paul, a 3rd grader, has the following utility function over his lunch of Twinkles
(t) and soda (s),
utility = U(t, s) = √√ts
(a) If Twinkles cost $0.10 cach and soda costs $0.25 per can, how must Paul spend
the $1.00 from his parents in order to maximize his utility?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3585354-64d7-4f4a-b055-4a9b75b3799d%2F824ddffc-7025-4c4a-a002-a1dbcdd5dd0b%2Fdb7rxeq_processed.png&w=3840&q=75)
Transcribed Image Text:3. Suppose Paul, a 3rd grader, has the following utility function over his lunch of Twinkles
(t) and soda (s),
utility = U(t, s) = √√ts
(a) If Twinkles cost $0.10 cach and soda costs $0.25 per can, how must Paul spend
the $1.00 from his parents in order to maximize his utility?
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