18. Jackie drives 160 miles from Gary, Indiana to
1 answer:
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Answer:
She consumes 30 blue ray disk and 60 DVD respectively.
Step-by-step explanation:
Consider the provided information.
Calculate marginal utility of good
Differentiate with respect of x and y.
Her consumption of Blu-ray disks (X) with a price of $40 and Y is her consumption of DVDs with a price of $10.
The ratio of marginal utility of good x to y is equal to the price ratio:
Substitute the respective values.
She has $1800 with which to spend on the two goods.
Her consumption of Blu-ray disks (X) with a price of $40 and Y is her consumption of DVDs with a price of $10. She has $1800 with which to spend on the two goods.
Therefore,
Substitute the value of y in above equation.
Thus,
She consumes 30 blue ray disk and 60 DVD respectively.
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