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Suppose That Maria Cares Only About Shoes and Clothes

Question 54

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Suppose that Maria cares only about shoes and clothes. Her utility function is U = S0.5C0.5, where S is the number of pairs of shoes and C is the number of clothing items that she owns. The price of shoes is $80, and the price of clothes is $100. Suppose that Maria must have 1,000 units of utility and wants to achieve this level of utility with the lowest possible expenditure. How can Maria's expenditure minimization problem be expressed as a Lagrangian equation?


A) Suppose that Maria cares only about shoes and clothes. Her utility function is U = S<sup>0.5</sup>C<sup>0.5</sup>, where S is the number of pairs of shoes and C is the number of clothing items that she owns. The price of shoes is $80, and the price of clothes is $100. Suppose that Maria must have 1,000 units of utility and wants to achieve this level of utility with the lowest possible expenditure. How can Maria's expenditure minimization problem be expressed as a Lagrangian equation? A) B) C) D)
B) Suppose that Maria cares only about shoes and clothes. Her utility function is U = S<sup>0.5</sup>C<sup>0.5</sup>, where S is the number of pairs of shoes and C is the number of clothing items that she owns. The price of shoes is $80, and the price of clothes is $100. Suppose that Maria must have 1,000 units of utility and wants to achieve this level of utility with the lowest possible expenditure. How can Maria's expenditure minimization problem be expressed as a Lagrangian equation? A) B) C) D)
C) Suppose that Maria cares only about shoes and clothes. Her utility function is U = S<sup>0.5</sup>C<sup>0.5</sup>, where S is the number of pairs of shoes and C is the number of clothing items that she owns. The price of shoes is $80, and the price of clothes is $100. Suppose that Maria must have 1,000 units of utility and wants to achieve this level of utility with the lowest possible expenditure. How can Maria's expenditure minimization problem be expressed as a Lagrangian equation? A) B) C) D)
D) Suppose that Maria cares only about shoes and clothes. Her utility function is U = S<sup>0.5</sup>C<sup>0.5</sup>, where S is the number of pairs of shoes and C is the number of clothing items that she owns. The price of shoes is $80, and the price of clothes is $100. Suppose that Maria must have 1,000 units of utility and wants to achieve this level of utility with the lowest possible expenditure. How can Maria's expenditure minimization problem be expressed as a Lagrangian equation? A) B) C) D)

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