Question

Natalia and her sister, Gina, have the following utility functions on the number of slices of pizza (x) and cans of soda (y) they consume in the semester. Natalia’s is U(x,y)=3x+2y and Gina’s is V(x,y)=4x+2y. Then, among the bundles that are indifferent to (2,0) for Natalia, the only bundle that gives Gina a utility of 7 is?

	a.	(7, 0)
	b.	(0, 7/2)
	c.	(7/4,0)
	d.	(0, 3/2)
	e.	(1, 3/2)

Answer 1

e) 1,3/2 is the bundle that is indifferent to natalia's (2,0) and also gives Gina utility of 7.