Question

Tessa's utility function for Akrennian Beetle Sashimi (21) and Kep-Mok Ticks (22) (both are alien foods out of this world!) is given by u(21,22) = (1 +222. 3rd attempt Part 1 (1 point) See Hint Assuming prices and income are pı = 2.00, P2 = 2.00, and m = 300.00, what percentage of her income does Tessa spend on Kep-Mok Ticks? %

Answer 1

Tessa's utility function for Aksennion Beetle sashini (21) and keep kep - Mok - Ticks (re). . ( both are alien foods out of this world) .. is given by i (xi j kq) = xitzea Now Marginal utility of st sashimi (X1)= MUI OU (X1, K2) 2x - Моглө« uk 4: 4 kap- моk - Tick (x) = м. .2 20CM.,X) = 2 2X2 .. part 1 Assning puces and income are Pi = 2:00, P2 = 2:00 and ms 300.00 Now budget constant ist ma Piai + PH2 =) 300 = 2x1 +242 Now, MUL = 2/2 = os and ML = 2/6 = 1 un Now, as Mul> Mui =). Hnce Tessa will consime only kep-mok - Ticks (22) and optimal Consumption of 12 will be found by substituting 8,.=0 in the budget constant we gut! ..300 = 2x1 + 2x2 =(2x0) +222 ..=). K22 150 anned with CamScanner

Hence of timal buelles (x1,K2) = (0, 150) wince as Tessa spunds his entire income on . kep-mok Ticks (X2), Tus the pucentage of her in come dos tusa spend on kep-mok - Ticks CSScanned with CamScanner