Suppose that ben has 90 to spend on two goods movie m and, Ask an Expert

Economics

Suppose that Ben has $90 to spend on two goods, movie (M) and hamburger (H). The price of a movie is $10 and the price of a hamburger is $2. Ben’s preferences are represented by the utility function: U(M, H) = M *H^2 .

(a) What is Ben’s optimal choice between movie and hamburger?

(b) Suppose that the price of hamburger rises to $5. How will this change Ben’s decision?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91403141

Have any Question?Write your Review or question?

Related Questions in Business Economics

What steps do i take to calculate at what prices would

What steps do I take to calculate, At what prices would Google have to close in order for it to be considered statistically unusual? You will have a low and high value. Use the definition of unusual from the course textb ...

In simple termswhat does it mean for two probabilities to

In simple terms,What does it mean for two probabilities to be mutually exclusive? Provide an example of probabilities that are mutually exclusive

Assume the following probabilitiespcustomer makes a

Assume the following probabilities: P(Customer makes a purchase) = 0.500 P(Customer does not make a purchase) = 1- 0.500 Compute the probability that both customers purchase (# purchases = 2), and enter your answer with ...

A survey of publishing jobs indicates that 92 percent are

A survey of publishing jobs indicates that 92 percent are completed on time. Two publishing jobs are to be completed this week. (Assume the likelihood the second is completed on time does not depend on whether the first ...

Qxd 14 - 12 pxnbspnbspnbspandnbspqxs 14pxnbsp-

QXd = 14 - (1/2) P X and QXS = (1/4)P X - 1 a. Determine the equilibrium price and quantity. Show the equilibrium graphically. b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium price a ...

Suppose that you generate a random number between 0 and 1

Suppose that you generate a random number between 0 and 1. (So all numbers are equally likely to come up.) a. Draw a probability distribution function for this situation. Label the axes so it is very clear! b. What is th ...

The time needed to complete the final exam for math 106 is

The time needed to complete the final exam for Math 106 is normally distributed with a mean of 75 minutes and a standard deviation of 10 minutes. For each question below, draw, label, and shade the area that you are inte ...

How does a high-tech industry differ from most other

How does a high-tech industry differ from most other industries? Provide two examples.

A national air traffic control system handled an average of

A national air traffic control system handled an average of 47,556 flights during 28 randomly selected days in a recent year. The standard deviation for this sample is 6,251 flights per day. Complete parts a through c be ...

Some seem to believe that we should be pure maximizers

Some seem to believe that we should be pure maximizers. Others say that we do better as constrained maximizers. Which view does David Schmidtz endorse and why?

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