Trigleater is a hungry individual in the Grossman model deciding what to have for dinner is looking at variable options. Trigleater has a special condition called "Eaterblood" where whatever she eats will affect her health almost immediately. The following table reflects the options she is considering and the effect on health Meal Home Good Z Health H Steak and eggs +9 -4 Kale salad and broccoli -5 +18 Double cheeseburger deluxe with coke 12 If Trigleater's single period utility function is given by U=5Z+2H and she can only select one item from the table above. -18 Allpositive is a new promising pharmaceutical company came with a new supplement "Bestofboth" that will halve the negative health effect and at the same time double the positive health effects. What would be the optimal selection if she takes Bestofboth supplement and what would be the maximum utility Kale salad with broccoli max utility = 47 Double Cheeseburger deluxe with coke max utility = 102 %3D Steak and eggs max utility-76 Kale salad with broccoli max utility =59.5

Trigleater is a hungry individual in the Grossman model deciding what to have for dinner is looking at variable options. Trigleater has a special condition called "Eaterblood" where whatever she eats will affect her health almost immediately. The following table reflects the options she is considering and the effect on health Meal Home Good Z Health H Steak and eggs +9 -4 Kale salad and broccoli -5 +18 Double cheeseburger deluxe with coke 12 If Trigleater's single period utility function is given by U=5Z+2H and she can only select one item from the table above. -18 Allpositive is a new promising pharmaceutical company came with a new supplement "Bestofboth" that will halve the negative health effect and at the same time double the positive health effects. What would be the optimal selection if she takes Bestofboth supplement and what would be the maximum utility Kale salad with broccoli max utility = 47 Double Cheeseburger deluxe with coke max utility = 102 %3D Steak and eggs max utility-76 Kale salad with broccoli max utility =59.5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

Paragraph
Styles
Trigleater is a hungry individual in the Grossman model deciding what to have for
dinner is looking at variable options. Trigleater has a special condition called
"Eaterblood" where whatever she eats will affect her health almost immediately.
The following table reflects the options she is considering and the effect on health
Meal
Home Good Z
Health H
Steak and eggs
+9
-4
Kale salad and broccoli
-5
+18
Double cheeseburger deluxe with coke
If Trigleater's single period utility function is given by U-5Z+2H and she can only
select one item from the table above.
12
-18
Allpositive is a new promising pharmaceutical company came with a new
supplement "Bestofboth" that will halve the negative health effect and at the same
time double the positive health effects.
What would be the optimal selection if she takes Bestofboth supplement and what
would be the maximum utility
Kale salad with broccoli max utility = 47
Double Cheeseburger deluxe with coke max utility = 102
Steak and eggs
max utility=76
Kale salad with broccoli max utility =59.5

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