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Part 3 Dotty buys pencils. Two types of pencils are sold: Ticonderoga which are sold with 10 pencils per pack, and Learner which are sold
Part 3 Dotty buys pencils. Two types of pencils are sold: Ticonderoga which are sold with 10 pencils per pack, and Learner which are sold with 12 pencils per pack. Dotty only cares about the total number of pencils she has. Let q1 be the number of packs of Ticonderoga pencils, and q2 as the number of packs of Learners. The prices of packs are p1=6 and p2=7. Dotty spends $84 on packs of pencils. 10. What is the name given to these kinds of preferences? 11. Provide a utility function representing these preferences. 12. What is Dotty's utility maximizing bundle of packs of Ticonderoga and Learner pencils
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