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If Price Increase 2 JD and Quantity Change 4: $2 Per Unit and The Price of Pretzels Is $3 Per Unit, Income 20
If Price Increase 2 JD and Quantity Change 4: $2 Per Unit and The Price of Pretzels Is $3 Per Unit, Income 20
use the information in the table to answer the indicated questions. Assume the price of cola is
$2 per unit and the price of pretzels is $3 per unit, income= 20
Units of TU of MU of
Units of cola TU of cola MU of cola pretzels pretzels pretzels
1 8 8 1 27 27
2 24 16 2 45 18
3 36 12 3 54 9
4 40 4 4 60 6
5 42 2 5 63 3
1.What combination should he purchase in order to maximize his utility?
2.Write and vertify the equilibrium condition?