Essay
Suppose Joe's utility for lobster (L)and soda (S)can be represented as U = L⁰.⁵ S⁰.⁵.Joe walks into a restaurant with $72.Lobsters cost $18 each and sodas cost $2 each.How much lobster and soda will Joe consume if he intends to spend all his money? (There are no tax and no tips.)
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