While visiting family in Mexico, your professor has abudget of $ 255 ($ = pesos) that he spends on tacosand tequila.The price of tacos is $ 6 and a shot of tequila is pricedat $ 16.During his visit the price of tacos changes to $ 5.Assume your professor has a Cobb-Douglas utilityfunction with (tacos) parameter a = ( 27 / 100).How many shots of tequila does your professorpurchase ?(Assume both goods are commodities.)(Answer is : 11.63)

Here we calculate number of shots purchase by professor by using the given information so the…

While visiting family in Mexico, your professor has a budget of $ 255 ($ = pesos) that he spends on tacos and tequila. The price of tacos is $ 6 and a shot of tequila is priced at $ 16. During his visit the price of tacos changes to $ 5.

While visiting family in Mexico, your professor has a budget of $ 255 ($ = pesos) that he spends on tacos and tequila. The price of tacos is $ 6 and a shot of tequila is priced at $ 16. During his visit the price of tacos changes to $ 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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