Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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Question
Chapter 2, Problem 2.3P
To determine
The maximum value for the function
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Solve each of the following equations for x
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Kenji is buying pizza and salad for a company lunch. Suppose that a slice of pizza costs $2.00, and a bowl of salad costs $4.00.
Let E be the amount in dollars that Kenji spends on pizza and salad. If Kenji buys P slices of pizza and S bowls of salad, then the total amount of
money he spends (E) can be represented by the equation
Now rearrange the equation you wrote above so that S is written in terms of E and P. The quantity of salad he buys can be represented by the
equation
Suppose Kenji has $32.00 to spend on pizza and salad; that is, E= $32.00.
Complete the following table with the values of P or S that make the equation true.
Hint: To complete the first row, determine the number of salad bowls Kenji can purchase with $32.00, when the number of pizza slices he purchases
is 0.
Budget Pizza
Salad
(Dollars) (Slices) (Bowls)
32.00
0
32.00
8
32.00
00
0
Use the Lagrange multiplier method to optimize the objective function 30xy subject to the
constraint x + 25y = 500.
Chapter 2 Solutions
Microeconomic Theory
Knowledge Booster
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