Suppose Paul gets utility from consuming two goods, pizza (P) and soda (S). His utility function is given by U(P,S) = p0.550.5. Paul's income is $20, the price of pizza is $5 and the price of soda is $2. Find Paul's utility maximizing quantities of pizza and soda.

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
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Suppose Paul gets utility from consuming two goods, pizza (P) and soda (S). His utility
function is given by U(P,S) = p0.550.5.
Paul's income is $20, the price of pizza is $5 and the price of soda is $2.
Find Paul's utility maximizing quantities of pizza and soda.
Transcribed Image Text:Suppose Paul gets utility from consuming two goods, pizza (P) and soda (S). His utility function is given by U(P,S) = p0.550.5. Paul's income is $20, the price of pizza is $5 and the price of soda is $2. Find Paul's utility maximizing quantities of pizza and soda.
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