AutoSave . Off) Econ 301 - Spring 2019 - Blue Final (1) - Saved to this PC Search (Alt+Q) Vasili, Justin B VJ X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments & Cut Calibri (Body) 11 ~ A" A Aa Ap Find [ Copy AaBbCcDd AaBbCcDd AaBbC AaBbcc Aab AaBbCCD Lol S'c Replace Paste BIU~ ab X x A LA 1 Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Dictate Sensitivity Editor Reuse Format Painter Select Files Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor Reuse Files | ~ Louise's utility over baskets of pounds of Kale (K) and heads of Lettuce (L) is U(K L) = 50K1/21 1/2, with marginal utilities du(K,L)/OK = 25K.1/21 1/2 and dU(K,L)/OL = 25K1/21.1/2. The current price of Lettuce PL = $0.50/Head and the current price of Kale Px = $2.00/Pound. _ Louise has an income of $32.00 for purchase of Kale and Lettuce. Louise maximizes her utility consuming heads of Lettuce. 3) 4 b) 8 c) 16 d) 32 e) 64 2. Louise's maximum utility equals _ utils. a) 600 b) 720 () 760 d) 800 e) 960 3. Suppose the price of Kale falls to Px = $0.50.. If the price of lettuce remains the same (PL = $0.50), the minimum amount of income Louise would need to reach the level of satisfaction she achieved before the price fell is _ dollars. [Hint: The mathematics involved here are identical to what we use in choosing levels of Labor (L) and Capital (K) to minimize long run costs.] a) 12.00 b) 16.00 c) 20.00 d) 24.00 e) 32.00 4. Following a drop in the price of Kale to Px = $0.50/Pound, the change in Louise's quantity demanded of Kale due to the substitution effect equals_ pounds.. al & b) 12 () 16 d) 20 e) 24 5 Following a drop in the price of Kale to Px = $0.50/Pound, the change in Louise's quantity demanded of Kale due to the income effect equals _ pounds.- a) 8 b) 12 c) 16 d) 20 e) 24 Page 1 of 8 2234 words CX Focus + 70% Type here to search W 10:17 AM 39.F 12/14/2021