Question
Amir derives utility from attending rock concerts (r) and from colas (c) as follows: U(c,r) = c0.9r 0.1 If the price of cola (Pc) is
Amir derives utility from attending rock concerts (r) and from colas (c) as follows:
U(c,r) = c0.9r 0.1
If the price of cola (Pc) is RM1 and the price of concert tickets (Pr) is RM30 and Amir's income is RM300, how many colas and tickets should Amir buy to maximize his utility?
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
9th Edition
978-0132146654, 0132146657, 9780273754091, 978-0273754206
