Question

Suppose your favorite ice cream flavor, strawberry, costs $1.50 per cone and chocolate costs $1.00 per cone. If you receive 10 utils when you eat chocolate ice cream, how many additional utils would you need to get from eating strawberry ice cream to make you indifferent between purchasing the two flavors of ice cream?

Answer 1

Answer:

additional utils from eating strawberry = 5 to make indifferent between purchasing 2 flavors of ice cream

Step-by-step explanation:

given data

strawberry costs = $1.50 per cone

chocolate costs = $1.00 per cone

eat chocolate receive = 10 utils

to find out

how many additional utils would you need to get from eating strawberry ice cream

solution

we know here that when we take chocolate ice cream

for $1 he get = 10 utils

so we can say he is indifferent between two flavors

when he get 10 utils for $1 on strawberry ice cream also

so that he get 15 utils for a strawberry ice cream that will be  $1.5

so that additional utils from eating strawberry ice cream will be here as

additional utils from eating strawberry = 15 - 10

additional utils from eating strawberry = 5