I have a quistion regarding the below: If the price of a complement for tires decreases, all else equal, a.quantity demanded for tires will…
September 3, 2020
Our social contract theorists suggest a stark divide between life in a ‘civil society’ and life in a ‘state of nature’, and between the rights and…
September 3, 2020

4. Suppose that Lisa’s utility derived from consuming Z units of pizza and B units of burrito is given by the following utility function:U=u(B,Z)= 2ln(Z) + ln(B)We further assume that the prices of burrito and pizza are $1 and $4, respectively, and that she has $40 to spend on pizzas and burritos each week.(i) Draw her budget constraint in a graph(ii) Find Lisa’s optimal consumption bundle of burritos and pizzas, and show your solution in the graph of part (i). (Hint: MU of z = (3/Z) and MU of B = (2/B)(iii) What is her maximum utility achieved?

KM
Place Order