Chris spends 300 per year to buy two services hair coloring, Ask an Expert

Economics

Chris spends $300 per year to buy two services, Hair Coloring (HC) and Pedicure (PC).

a) Suppose HC costs $50 per visit and PC costs $30 per visit. Write and Draw his budget constraint. HC PC.

b) Suppose also his utility function is given by the equation U(PC, HC) = 10HC + 6 PC. What combination of PC and HC should Chris buy to maximize his utility? What is the level of utility?

c) The Pedicure shop that Chris goes to has a special promotion. For every 5visits he buys, he will get a 6th visit for free. Draw his budget constraint. What combination of PC and HC should Chris buy to maximize his utility?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91710939

Have any Question?Write your Review or question?

Related Questions in Business Economics

The demand fornbspbedspreadsisnbsppnbspnbsp150-4qdthe

The demand for bedspreadsis P ? = 150-4 QD . The supply of bedspreads is P ? = 125+5 QS . What is the equilibrium price of a bedspread and what is the equilibrium quantity of bedspreads?? The equilibrium price is ?$()a ...

A certain device is used to determine the sex of an unborn

A certain device is used to determine the sex of an unborn baby, but the device is not very reliable. If the fetus is truly a boy, the device says BOY with probability 0:8 (but, mistakenly, GIRL with probability 0:2). If ...

What are three ways that even every forecast model should

What are three ways that even every forecast model should be evaluated to obtain the best forecast result.

Discuss the benefits and challenges of developing

Discuss the benefits and challenges of developing center-based learning environments.

Suppose the quantity of fish purchased by mr singh family

Suppose the quantity of fish purchased by Mr Singh family is 21 kilos per year when the price is $11.50 per kilo and 17 kilos per year when the price is $20.50 per kilo. Calculate the price elasticity of demand coefficie ...

The distribution of heights of adult american women is

The distribution of heights of adult American women is approximately normal with a mean of 64 inches and standard deviation of 2 inches. What percent of women is taller than 68 inches?

The food marketing institute shows that 16 of households

The Food Marketing Institute shows that 16% of households spend more than $100 per week on groceries. Assume the population proportion is p = 0.16 and a sample of 600 households will be selected from the population. Us ...

Find the five number summary range and interquartile range

Find the five number summary, Range, and interquartile range, and midrange for the data: 52,27,36,69,43,59,40,70,32

1 government spending fluctuates less than spending by

1. Government spending fluctuates less than spending by households and spending by firms on investment. Explain. 2. In countries with well-developed tax collection and welfare systems, there are automatic stabilisers tha ...

In an experian automotive 2008 study the average number of

In an Experian Automotive 2008 study, the average number of vehicles per household in the United States was found to be 2.28 vehicles. The results also showed that almost 35% of households have three or more vehicles. A. ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert