Economics Today (19th Edition)
19th Edition
ISBN: 9780134478777
Author: Roger LeRoy Miller
Publisher: PEARSON
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Chapter 20.F, Problem 7P
To determine
Suppose that at a higher satisfaction level than in problem F-3, Sue’s constant-utility preferences are as shown in the table below. Calculate the slope of Sue’s new budget constraint using the information provided in problem F-5. Supposing now that the price of a soft drink falls to $1, find the combination of goods that satisfies Sue’s utility-maximization problem in light of her budget constraint.
| Combination of Bottled Water and Soft Drinks | Bottled Water per Month | Soft Drinks per Month |
|---|---|---|
| A | 5 | 22 |
| B | 10 | 14 |
| C | 15 | 8 |
| D | 20 | 4 |
| E | 25 | 2 |
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Chapter 20 Solutions
Economics Today (19th Edition)
Ch. 20.F - Prob. 1PCh. 20.F - Prob. 2PCh. 20.F - Prob. 3PCh. 20.F - Prob. 4PCh. 20.F - Prob. 5PCh. 20.F - Prob. 6PCh. 20.F - Prob. 7PCh. 20.F - Prob. 8PCh. 20.F - Prob. 9PCh. 20.F - Prob. 10P
Ch. 20 - Prob. 20.1LOCh. 20 - Prob. 20.2LOCh. 20 - Prob. 20.3LOCh. 20 - Prob. 20.4LOCh. 20 - Prob. aFCTCh. 20 - Prob. bFCTCh. 20 - Prob. cFCTCh. 20 - Prob. 1CTQCh. 20 - Prob. 2CTQCh. 20 - Prob. 1FCTCh. 20 - Prob. 2FCTCh. 20 - Prob. 1PCh. 20 - Prob. 2PCh. 20 - Prob. 3PCh. 20 - Prob. 4PCh. 20 - Prob. 5PCh. 20 - Prob. 6PCh. 20 - Prob. 7PCh. 20 - Prob. 8PCh. 20 - Prob. 9PCh. 20 - Prob. 10PCh. 20 - Prob. 11PCh. 20 - Prob. 12PCh. 20 - Prob. 13PCh. 20 - Prob. 14PCh. 20 - Prob. 15PCh. 20 - Prob. 16PCh. 20 - Prob. 17PCh. 20 - Prob. 18PCh. 20 - Prob. 19PCh. 20 - Prob. 20PCh. 20 - Prob. 21PCh. 20 - Prob. 22PCh. 20 - Prob. 23P
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