Question
Meghdad consumes only two goods, chicken strips (C) and hamburgers (H) and considers them to be perfect substitutes, as shown by his utility function: U(C,
Meghdad consumes only two goods, chicken strips (C) and hamburgers (H) and considers them to be perfect substitutes, as shown by his utility function: U(C, H) = 2C + 4H. The price of chicken strips is $6 and the price of hamburgers is $4, and Meghdad's monthly income is $400. Meghdad's friend gives him a birthday gift certificate of $60 redeemable only at chicken strips. His friend could have made him exactly as happy by spending far less. His friend would have needed to give him $________
in cash to make him just as well off as with the gift certificate.
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