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Ryan likes to purchase beer b and pizza p at the price of pband pp, respectively. She hasa budget of $2,000 for these two goods
Ryan likes to purchase beer b and pizza p at the price of pband pp, respectively. She hasa budget of $2,000 for these two goods and her utility function is described by the following:U(Ryan) =ln(b) + (1 -)ln(p) where represents how much Ryan likes beer relativeto pizza (i.e. 0 <
< 1). (Note: This should be practicing what you already know aboutmaximizing utility subject to a budget constraint.)
Please solve for the optimal choice of b and p given the prices pband pp.
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