MUx1/P1=4/2=2
MUx2/P2=5/1.6=3.125
Since MU2/P2>MU1/P1
Thus spend entire income on Lyft ride
and Lyft ride=M/P2=32/1.6=20
Ans is C
Question 15 4 points Let's suppose that you are planning a night out with friends. You...
que TU Question 4 10 points Save Answer Let's suppose that you are planning a night out with friends. You do not want to drive, so instead, you will use one of the popular ride-share apps de Uber and Lyft). Further, a ride with Uber (1) provides you with the same level of satisfaction as a ride with Lyft (X2). That being the case your preferences can be represented by the following utility function: U = u(x1.x2) = 4x1 +...
Suppose that a recent scandal has resulted in bad publicity for Uber. As a result, a ride with Uber () no longer provides you with the same level of satisfaction as a ride with Lyft (). In fact, a ride with Lyft provides you with double the satisfaction. That being the case, your preferences can be represented by the following utility function: Further, let's suppose that you have a budget (I) of $21, riding with Lyft costs $1 per mile...
Question 13 4 point Let's suppose that you are planning a dinner for your friends, and you want to make sure that you prepare enough food. You and your friends have a strong preference for crawfish (x), but enjoy hamburgers (32), too. That being the case, your preferences can be represented using the following utility function: (21, 12) = 62, +222 Further, let's suppose that one pound of crawfish costs $3, one hamburger patty costs $2, and you have $60...
Question 10 of Question 10 10 points Save Answer Let's suppose that you are in the market for new cornhole platforms and bags. Specifically, you need two cornhole platforms (X) and eight bags (X. That being the case your preferences can be represented by the following utility function U = u(x1.X2) = min(4x1.x2] What is the marginal rate of substitution (MRS) when 4x X ? Undefined
If you’re like most college students, you are always worried about having enough money. Suppose that you decide to become an Uber driver and offer rides to students on weekends. For a fee, you will drive them to parties and pick them up at the end of the night. The table below depicts the demand schedule for rides. To keep things simple, assume that you are the only person providing this service; that is, you’re a monopolist. Let’s see how much...