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Nelson spends his entire weekly budget M > 0 on movies (x) and Pizza (y). If he spends all of M, he can buy: 9
Nelson spends his entire weekly budget M > 0 on movies (x) and Pizza (y). If he spends all of M, he can buy: 9 4 movies and 4 pizzas o 5 movies and 3 pizzas Note: We assume that both movies and pizzas are infinitely divisible. Wherever rounding is needed, please round to 3 decimal places (a) Let p: denote the price of a movies (x) and py denote the price of pizzas (y). Using the above information, we can determine that px/py = (b) If Nelson spends his entire income M on buying pizzas (y), what is the maximum number Of pizzas he could buy? y = (c) If Nelson spends his entire income M on buying movies (x), what is the maximum number '3" movies he could buy? x = (d) Nelson's preferences over movies (x) and pizzas (y) isgiven by the utility function: U=max{x,y}={x, x 2 y Y. K
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