Suppose a person has $8 to spend only on applesand bananas. Apples cost $.04 each and bananascost $.01 each. Furthermore, his preferences forapples (A) and bananas (B) can be represented byU = the square root of AB.a.) If A =5 and B=80, what will utitly be?b.)lf A =10, what value of B will provide the sameuititly in part a?c.) If A=20, what value of B will provide the sameutility in parts a and b?

utility in economics can defined as the total satisfaction received from the consuming good or…

U = the square root of AB. a.) If A =5 and B=80, what will utitly be? b.)lf A =10, what value of B will provide the same uititly in part a? c.) If A=20, what value of B will provide the same utility in parts a and b?.

U = the square root of AB. a.) If A =5 and B=80, what will utitly be? b.)lf A =10, what value of B will provide the same uititly in part a? c.) If A=20, what value of B will provide the same utility in parts a and b?.

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

Suppose a person has $8 to spend only on apples
and bananas. Apples cost $.04 each and bananas
cost $.01 each. Furthermore, his preferences for
apples (A) and bananas (B) can be represented by
U = the square root of AB.
a.) If A =5 and B=80, what will utitly be?
b.)lf A =10, what value of B will provide the same
uititly in part a?
c.) If A=20, what value of B will provide the same
utility in parts a and b?

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