Diogo has a utility function, 0.2 0.8 U(q,, 92) =q,"42 where q, is chocolate candy and q2 is slices of pie. If the price of slices of pie, p2, is $1.00, the price of chocolate candy, p,, is $0.50, and income, Y, is $100, what is Diogo's optimal bundle? The optimal value of good q, is 91 units. (Enter your response rounded to two decimal places.)

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.2P
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Question
Diogo has a utility function,
U(q,, 9,)=q,"
02, 0.8
where g, is chocolate candy and g, is slices of pie. If the price of slices of pie, p2, is $1.00, the price of chocolate candy, p4, is $0.50, and income, Y, is $100, what is
Diogo's optimal bundle?
The optimal value of good q, is
units. (Enter your response rounded to two decimal places,)
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Transcribed Image Text:Diogo has a utility function, U(q,, 9,)=q," 02, 0.8 where g, is chocolate candy and g, is slices of pie. If the price of slices of pie, p2, is $1.00, the price of chocolate candy, p4, is $0.50, and income, Y, is $100, what is Diogo's optimal bundle? The optimal value of good q, is units. (Enter your response rounded to two decimal places,) étv 15 МacBook Air 80 esc F5 F6 F7 F8 F2 F3 F4 F1 ! @ #3 2$ & 1 7 8. Q E T Y tab A S G aps lock N control ontion command の * 00 っ! つ エ B D レ
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