Multiple Choice
Suppose that Lloyd cares only about shoes and clothes. Lloyd's 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 Lloyd owns. The price of shoes is $80, and the price of clothes is $100. Lloyd has a budget of $3200. Which levels of S and C maximize Lloyd's utility?
A) S = 40 and C = 0
B) S = 16 and C = 20
C) S = 20 and C = 16
D) S = 10 and C = 24
Correct Answer:
Verified
Correct Answer:
Verified
Q38: Which of the following is NOT a
Q39: Gael's utility function for trout (T) and
Q40: Mark's utility function over football tickets (F)
Q41: Cashews are sold in either 8-ounce (C<sub>8</sub>)
Q42: The consumer's budget constraint is $6 =
Q44: A consumer buys coffee (C) for $3
Q45: Parker consumes goods X and Y. Her
Q46: Pedro loves leather belts but neither likes
Q47: Esther has an income of $80, and
Q48: (Figure: Concert Tickets and Movie Tickets I)