3. Ryan has $1,700 that he can use for food. His college cafeteria sells only pizzas (p) and salads (s). One pizza costs
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- 3 Ryan Has 1 700 That He Can Use For Food His College Cafeteria Sells Only Pizzas P And Salads S One Pizza Costs 1 (64.69 KiB) Viewed 12 times
3. Ryan has $1,700 that he can use for food. His college cafeteria sells only pizzas (p) and salads (s). One pizza costs $5. One salad costs $10. Ryan's utility function is as follows u(p, s) = (p) & (s) (1) where p is the number of pizzas and s is the number of salads. Your task is to predict how many pizzas and how many salads will Ryan buy. (a) Select the correct statements Select one or more: a. Ryan likes pizza more than salad b. The marginal utility of salad is diminishing. c. Ryan's feasible frontier is 5p + 10s= 1700. Od. The marginal utility of pizza is diminishing. Oe. The marginal utility of both goods is positive Of. Salads provide constant marginal utility to Ryan. g. Pizzas provide constant marginal utility to Ryan.
(b) Find MRS(p,s) and MRT(p,s). (Write down all the steps of your calculation, not only the final results.) Pictures can be uploaded.