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Mike likes to drink soft drinks. He considers Pepsi and Coca Cola bottles of the same size as identical goods with no difference whatsoever to
Mike likes to drink soft drinks. He considers Pepsi and Coca Cola bottles of the same size as identical goods with no difference whatsoever to him. For this problem, Let x =Pepsi cans of 355 ml and y =Coca Cola cans of 355 ml. Answer the following questions a) Write down a utility function that could most likely describe this situation b) Obtain the demands for x and y (Hint: demand is a function of I, Px and Py) c) If I = $10, Px = $1.50 and Py = $1, find how many soft drinks he buys of each type?
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