Question

Lawnchair Larry likes to get as high as possible (by attaching helium balloons to his lawnchair that lift him into the sky). Larry’s utility function can be represented by U = min[4B, H] where B is the number of balloons and H is the amount of helium. The prices are pB = 1, pH = 2, and Larry’s income is 36

How many balloons will larry buy?

Answer 1