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Frank consumes food (F) and whiskey (W). His utility function isU(F, W) = ln(F) + W. Let P denote the price of food, and throughout
Frank consumes food (F) and whiskey (W). His utility function isU(F, W) = ln(F) + W. Let P denote the price of food, and throughout the questionthe price of whiskey at 1. Frank's income is Y. Frank's wife tells him he'd betterlay off the whiskey. For what values of income Y will Frank not buy any whiskey?
a. Y1
b.
Y=PF
c.
Y 1/p
d.
Y 1/p
e.
Y 1
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