Answered: Tom is vegetarian and always eat a…

Tom is vegetarian and always eat a salad (s) with 2 glasses of green juice (g). His utility for the two goods is therefore 1 u(s, g) = min{s, -79}

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

1. For given prices ps and pg, and income I. Tom’s Marshallian demands for salad and
green juices are...

Tom is vegetarian and always eat a salad (s) with 2 glasses of green juice (g). His
utility for the two goods is therefore
1
u(s, g) = min{s, 79}

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(b) s*
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9
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Ps+2pg
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Ps+Pg
=
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Pg
, g*
=
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=
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Ps+Pg

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