Tristan has preferences for computers (C), and robots (R). Computers costs $750 a unit and robots costs $2000 a unit. Tristan has $15000 to spend on both goods. Give the equation for Tristan’s budget line. If robots are on the vertical axis, what is the slope of the budget line? Tristan is a utility maximizer. Describe the utility maximization condition. Using the available information at what value is utility expected to be maximized. It is known that the indifference curve is convex. What does this tell you about the relationship between the goods?
Tristan has preferences for computers (C), and robots (R). Computers costs $750 a unit and robots costs $2000 a unit. Tristan has $15000 to spend on both goods. Give the equation for Tristan’s budget line. If robots are on the vertical axis, what is the slope of the budget line? Tristan is a utility maximizer. Describe the utility maximization condition. Using the available information at what value is utility expected to be maximized. It is known that the indifference curve is convex. What does this tell you about the relationship between the goods?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 11SQ
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Tristan has preferences for computers (C), and robots (R). Computers costs $750 a unit and robots costs $2000 a unit. Tristan has $15000 to spend on both goods.
- Give the equation for Tristan’s budget line. If robots are on the vertical axis, what is the slope of the budget line?
- Tristan is a utility maximizer. Describe the utility maximization condition. Using the available information at what value is utility expected to be maximized.
- It is known that the indifference curve is convex. What does this tell you about the relationship between the goods?
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