Gina is at a toy store and is buying toy T-Rex's (x), which cost på, and toy yaks (y),which cost py. Her income is I. She likes 3 T-Rex's as much as she likes 4 yaks. Thesetoys are perfect substitutes for her. If pxO=406596795 and Py-4, and I = 120, what is Gina's utility under optimal consumption?

The goods that can be replaced with each other is known as PS(perfect substitute).The rise in price…

Answered: If px = 5 and py 40 65 96 79 = 4, and I…

Business

Economics

If px = 5 and py 40 65 96 79 = 4, and I = = 120, what is Gina's utility under optimal consumption?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 7QP

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Question

Gina is at a toy store and is buying toy T-Rex's (x), which cost på, and toy yaks (y),
which cost py. Her income is I. She likes 3 T-Rex's as much as she likes 4 yaks. These
toys are perfect substitutes for her.

If px
O
=
40
65
96
79
5 and Py
-
4, and I = 120, what is Gina's utility under optimal consumption?

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