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Q.1. Indrasis and Debut from PGP are planning to open a Idli-Dosa Restaurant. Before finalizing the menu, both of them wanted a pilot survey to
Q.1. Indrasis and Debut from PGP are planning to open a Idli-Dosa Restaurant. Before finalizing the menu, both of them wanted a pilot survey to study consumer preferences. They got some data from a representative consumer Ishita. However, they do not know what would be Ishita's optimal consumption bundle. Find Ishita's optimal consumption bundle assuming the entire budget is consumed with the following information. Ishita has limited income. She wants to maximise her utility by choosing the optimal consumption bundle between two goods, Dosa and Idli. Ishita's preference can be best described as TU = DI + 10D (where, TU = Total Utility; D = units of Dosa; / = units of Idli). Ishita's income is $10 per day and the price of Dosa is $1 per unit, and that of Idli is $2 per unit (assume Dosa on X-axis and show detailed calculations)
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