Hillary likes buying vinyl V. and CDs, C. Her utility

Hillary likes buying vinyl V. and CDs, C. Her utility

Hillary likes buying vinyl V. and CDs, C. Her utility function is: U(C,C) = V1C4 = 10 What it Hillary’s marginal rate of substitution of vinyl for CDs? Suppose that the price of vinyl is Pv and the price of a CD is Pc and that Hillary has I dollars a month to spend on either vinyl or on CDs. How many units of vinyl and CDs will she purchase in order to maximize utility? NB: Your answer will be in terms of Pr, Pc, and I.. Suppose that the price of vinyl is Py=100 and the price of CDs is PC =50 and that Hillary has Income I =5200 a month to speed on vinyl or CDs. Draw Hillary’s budget line.

 

Is this the question you were looking for? If so, place your order here to get started!