Question
The income-consumption curve for Dana between Qa and Qb is given as: Qa = Qb. His budget constraint is given as: 120 = Qa +
The income-consumption curve for Dana between Qa and Qb is given as: Qa = Qb. His budget constraint is given as:
120 = Qa + 4Qb How much Qa will Dana consume to maximize utility?
A) 0 B) 24 C) 30 D) 6
Answer: B
How do you arrive at 24, can you please show me the calculation
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
