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Louise's utility over baskets of pounds of Kale (K) and heads of Lettuce (L) is U(K,L) = 50K1/21 /2. At the margin, aU(K,L)/OK = 25K-1/213/2
Louise's utility over baskets of pounds of Kale (K) and heads of Lettuce (L) is U(K,L) = 50K1/21 /2. At the margin, aU(K,L)/OK = 25K-1/213/2 and OU(K,L)/AL = 25K 2L-1/2. The current price of Lettuce PL = $0.50/Head and the current price of Kale PK = $2.00/Pound. Louise has an income of $32.00 for purchase of Kale and Lettuce. 13. Louise maximizes her utility consuming heads of Lettuce. a) 4 b) 8 c) 16 d) 32 e) 64 14. Louise's maximum utility equals utils. a) 600 b) 720 c) 760 d) 800 e) 960
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