Asked by
Marah Foster
on Dec 01, 2024Verified
recall that Casper's utility function is 3x + y, where x is his consumption of cocoa and y is his consumption of cheese.If the total cost of x units of cocoa is x2, the price of cheese is $6, and Casper's income is $101, how many units of cocoa will he consume?
A) 9
B) 17
C) 8
D) 6
E) 18
Utility Function
It represents an individual's preferences over a set of goods and services, specifying the level of satisfaction or utility derived from different combinations of goods and services.
Cocoa
The dried and fully fermented fatty seed of Theobroma cacao, from which cocoa solids and cocoa butter are extracted.
Cheese
A dairy product made from curdled or cultured milk.
- Utilize the utility function concept to ascertain consumer preferences and demands.
- Learn how to calculate the demand for goods based on given utility functions and budget constraints.
Verified Answer
BB
Learning Objectives
- Utilize the utility function concept to ascertain consumer preferences and demands.
- Learn how to calculate the demand for goods based on given utility functions and budget constraints.