Dave has $50 to spend on lunch each week. He likes to eat a sandwich (x₁) and coffee (x₂) for lunch. Sandwich costs $5 e

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Dave has $50 to spend on lunch each week. He likes to eat a sandwich (x₁) and coffee (x₂) for lunch. Sandwich costs $5 e

Post by answerhappygod »

Dave Has 50 To Spend On Lunch Each Week He Likes To Eat A Sandwich X And Coffee X For Lunch Sandwich Costs 5 E 1
Dave Has 50 To Spend On Lunch Each Week He Likes To Eat A Sandwich X And Coffee X For Lunch Sandwich Costs 5 E 1 (57.4 KiB) Viewed 11 times
Dave has $50 to spend on lunch each week. He likes to eat a sandwich (x₁) and coffee (x₂) for lunch. Sandwich costs $5 each and coffee costs $2.50 each. His preference is given by the utility function U (X1, X2) = x1x2. (2+1+1+1) Draw Dave's budget line. What is the slope of the budget line? What is Dave's Marginal Rate of substitution? What kind of preferences does Dave have? (5) What is Dave's optimal choice of sandwich and coffee each week?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”