Wendell and Dominick both enjoy oranges, which come in two varieties: Good and Excellent! If we denote good oranges with the variable G and excellent oranges with the variable E, then both Wendell and Dominick would have preferences represented by: U = G*E. Wendell lives in Florida, where good oranges cost $0.7, and excellent oranges cost $2.44. Dominick lives in New York where both kinds of oranges cost $1.09 more than they do in Florida. Both Wendell and Dominick set aside $24 in their budget to buy oranges. Determine the optimal consumption bundles for Wendell and Dominick (fractional quantities are possible), then calculate the share of their total orange consumption comprised of excellent oranges. Report, in percentage form, how much larger the share is for Dominick as compared to Wendell.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Wendell and Dominick both enjoy oranges, which come in
two varieties: Good and Excellent! If we denote good oranges
with the variable G and excellent oranges with the variable E.
then both Wendell and Dominick would have preferences
represented by: U = G*E.
Wendell lives in Florida, where good oranges cost $0.7, and
excellent oranges cost $2.44. Dominick lives in New York
where both kinds of oranges cost $1.09 more than they do in
Florida.
N
Both Wendell and Dominick set aside $24 in their budget to
buy oranges.
Determine the optimal consumption bundles for Wendell and
Dominick (fractional quantities are possible), then calculate
the share of their total orange consumption comprised of
excellent oranges. Report, in percentage form, how much
larger the share is for Dominick as compared to Wendell.
Example: If we determine that Wendell will buy 2 good oranges
and 1 excellent one, and Dominick will buy 1 good orange and 1
excellent one, then the answer is 16.67. This is because 33.33%
of the oranges Wendell consumes are excellent, while 50% of the
oranges Dominick consumes are excellent. The difference is 50% -
33.33%= 16.67%, which is what you need to report. You may
round your final answer to two decimal places.
Transcribed Image Text:Wendell and Dominick both enjoy oranges, which come in two varieties: Good and Excellent! If we denote good oranges with the variable G and excellent oranges with the variable E. then both Wendell and Dominick would have preferences represented by: U = G*E. Wendell lives in Florida, where good oranges cost $0.7, and excellent oranges cost $2.44. Dominick lives in New York where both kinds of oranges cost $1.09 more than they do in Florida. N Both Wendell and Dominick set aside $24 in their budget to buy oranges. Determine the optimal consumption bundles for Wendell and Dominick (fractional quantities are possible), then calculate the share of their total orange consumption comprised of excellent oranges. Report, in percentage form, how much larger the share is for Dominick as compared to Wendell. Example: If we determine that Wendell will buy 2 good oranges and 1 excellent one, and Dominick will buy 1 good orange and 1 excellent one, then the answer is 16.67. This is because 33.33% of the oranges Wendell consumes are excellent, while 50% of the oranges Dominick consumes are excellent. The difference is 50% - 33.33%= 16.67%, which is what you need to report. You may round your final answer to two decimal places.
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