The price of salad is ps = 10, the price of green juice is pg = 5, and Tom’s income is I = 100. Tom is vegetarian and always eats a salad ($s$) with 2 glasses of green juice ($g$). His utility for the two goods is therefore\[ u(s, g) = \min \left\{ s, \frac{1}{2}g \right\} \] The image presents a multiple-choice question:"Tom’s utility at the optimal consumption bundle is"Options:(a) 10 (b) 5 (c) 2 (d) 8 (e) 12There are no graphs or diagrams associated with this question.

A perfect complement utility function is a utility function in which a consumer derives utility from…

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The price of salad is ps = 10, the price of green juice is pg = 5, and Tom’s income is I = 100

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

The price of salad is ps = 10, the price of green juice is pg = 5, and Tom’s income is I = 100.

Tom is vegetarian and always eats a salad ($s$) with 2 glasses of green juice ($g$). His utility for the two goods is therefore

\[ u(s, g) = \min \left\{ s, \frac{1}{2}g \right\} \]

The image presents a multiple-choice question:

"Tom’s utility at the optimal consumption bundle is"

Options:
(a) 10
(b) 5
(c) 2
(d) 8
(e) 12

There are no graphs or diagrams associated with this question.

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