Differences in caffeine levels

Assignment Help Business Economics
Reference no: EM13149099

Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals 2. If coffee and tea sell for the same price, Johnny will a. spend all $30 on tea. a. spend all $30 on tea. b. spend all $30 on coffee. c. spend $20 on coffee and $10 on tea. d. be indifferent between any bundle of coffee and tea costing $30 Can someone explain why the answer is B? From my understanding, MRS = -U1 / U2 or dq2 / dq1 and I don't know how to apply that.

Reference no: EM13149099

Questions Cloud

What would happen in this market : What would happen in this market? If consumers’ expectations were such that they were concerned about the economy and jobs, what would you think would happen in this market?
What firms survive the new demand curve in the industry : What will the new Lerner Index be after some time with the new demand curve and market price of 30? What firms survive the new demand curve in the industry and why?
Any substance that accepts protons is called : When KBr is placed in an aqueous solution, which of the following becomes oxidized?
Statement of cash flows direct method in the amount : On December 31, 2011, Wellstone Company reported net income of $70,000 and sales of $210,000. The company also reported beginning and ending accounts receivable at $20,000 and $25,000, respectively. Wellstone will report cash collected from custom..
Differences in caffeine levels : Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals 2.
How much physiological saline can be prepared : How much 0.54 M NaCl, "physiological saline," can be prepared via the dilution of 250 mL of a 6.0 M NaCl solution?
Every carbon atom is connected to exactly two hydrogen atoms : A compound with molecular formula C5H11N has no ? bonds. Every carbon atom is connected to exactly two hydrogen atoms.
What is the average number of new mutations : If the forward mutation rate is 1 x 10-5 new mutations per gene per generation, what is the average number of new mutations per gamete per generation? Show your work.
Integrating case 5-23 balance sheet : integrating Case 5-23 Balance Sheet

Reviews

Write a Review

 

Business Economics Questions & Answers

  Discuss how elasticities should be used in pricing decision

Discuss how elasticities should be used in pricing decisions. If you were responsible for setting the price of these volumes, what would you choose and why.

  How much would the industry save by raising all of the debt

Elucidate how much would the industry save by raising all of the debt now, in a single issue, rather than in three separate issues.

  Illustrate what is the maximum amount the bank can loan

show the impact of your deposit on the bank's assets and liabilities. If the required reserve ratio is 10 percent, illustrate what is the maximum amount the bank can loan from this deposit.

  Elucidate briefly in what way the hov

Elucidate briefly in what way the HOV, or factor content theorem, extends the standard HO model.

  What are different ways of measuring global inequality

Why should a profit maximizing manager who is setting prices care about elasticity demand curve for a product. Elasticity only accounts for how price changes revenue.

  Equation for marginal revenue

Find the level of output with the help of calculus, Qrmax, where total revenue reaches its maximum value.

  What to spent on software-hardware to improve efficiency

An engineering company requested that $500000 be spent on software and hardware to improve the efficiency of some control systems.

  Sales manager of an appliance store

Nevertheless your total unit sales have increased over this period. Assuming rational buyers and no deceptive advertising, how can you account for this.

  Illustrate what is the products price after the imposition

Illustrate what is the products price after the imposition of the tariff. what is the domestic value added before and after the imposition of the tariff.

  Expansion from which all americans benefited

claimed that the accumulation of wealth by capitalists was a small price to pay for the economic expansion from which all Americans benefited.

  Small-demonic country time deposits

Large-demonic country time deposits $ 304 billion Currency also coin held by nonbanking public 438 billion Checkable deposits 509 billion Small-demonic country time deposits

  Illustrate what happens to inflation is indeterminate

Illustrate what happens to inflation is indeterminate; it could be either higher or lower than in the standard model.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd