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Daniel derives utility from only two​ goods, cake ​(QC​) and donuts ​(​Qd). The marginal utility that Daniel receives from cake ​(MUc​) and donuts ​(​MUd) are given as​ follows: ​
MUc = Qd MUd = Qc
Daniel has an income of​ $240 and the price of cake ​(​Pc) and donuts ​(Pd​) are both​ $3.
1) What is Daniel's budget constraint?
A) 240 = 3Pc + 3Pd.
B) 240 = 3Qc + 3Qd.
C) 240 = (Pc)(Qc).
D) 240 = (Qc)(Qd).
2) Holding​ Daniel's income and constant at​ $240 and​ $3 respectively, what is​ Daniel's demand curve for​ cake?
A. Qc ​= ​120/Pc.
B. Qc ​= 240/(3​ + Pc​).
C. Qc ​= ​240/Pc.
D. Qc ​= 240 - Pc.
E. None of the above.

Respuesta :

jepessoa

Answer:

1) What is Daniel's budget constraint?

  • B) 240 = 3Qc + 3Qd.

Total budget = 240

Each cake or donut costs 3 each

2) Holding​ Daniel's income and constant at​ $240 and​ $3 respectively, what is​ Daniel's demand curve for​ cake?

  • E. None of the above.

240 = 3c + 3d

3c = 240 - 3d

c = 80 - d

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