Each day paul who is in third grade eats lunch at school he, Ask an Expert

Economics

Each day Paul, who is in third grade, eats lunch at school. He likes only twinikies (t) and soda (s), and these provide him a utility of

utility = U(t,s)=(ts)^1/2

a. If twinkies cost $0.10 each and soda costs $0.25 per cup, how should paul spend the $1 his mother gave him to maximize his utility?

b. If the school discourages twinkie consumption by increasing the price to $0.40, by how much will paul's mother have to increase his lunch allowance to provide him with the same level of utility he recieved in part (a.)?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91387237
Price:- $18

Guranteed 24 Hours Delivery, In Price:- $18

Have any Question?Write your Review or question?

Related Questions in Business Economics

If we believe the percent to be 75 how many police officers

If we believe the percent to be 75%, how many police officers must we survey to estimate the proportion of officers who graduated from a police academy if we want to ensure we can be 90% we are within 2% of the true prop ...

What are the typical types of risk faced by a firm explain

What are the typical types of risk faced by a firm? Explain each type of risk in details.

1 for each of the following write out the null and

1. For each of the following, write out the null and alternative hypotheses, and indicate whether it is a one-tail or two-tail hypothesis test a) Do Canadian children whose parents are librarians do better than Canadian ...

Sppose a and b are collectively exhaustive in addition pa

Suppose A and B are collectively exhaustive. In addition, P(A) = 0.2 and P(B) = 0.8. Suppose C and D are both mutually exclusive and collectively exhaustive. Further, P(C|A) = 0.7 and P(D|B) = 0.5. What are P(C) and P(D) ...

Suppose you roll a standard 6-sided die if you roll a 1 1

Suppose you roll a standard 6-sided die. If you roll a 1 (1), you randomly select one chip from a bowl containing 2 red (R) and 3 white (W) chips. If you don't roll a 1 (1c), you randomly select 1 chip from a bowl contai ...

The police lieutenant in charge of the traffic division

The police lieutenant in charge of the traffic division reviews the number of traffic citations issued by each of the police officers in his division. He finds that the mean number of citations written by each officer is ...

In a study of helicopter usage and patient survival among

In a study of helicopter usage and patient? survival, among the 55 comma 55,032 patients transported by? helicopter, 227 of them left the treatment center against medical? advice, and the other 54 comma 54,805 did not le ...

Do you think that the taxicab industry in large cities

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?

In 2009 the hershey company of pennsylvania became the

In 2009, the hershey company of pennsylvania became the latest company to open a candy factory in mexico, joining other american candy companies including brach's confections and ferrara pan candy, which had opened plans ...

The increase in prescription drugs cost increases the drug

The increase in prescription drugs cost, increases the drug companies profit. Should there be restrictions to lower consumer cost and how much of their profit should be reinvested into research and development?

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