The Consumer's Budget Constraint Is $6 = 0

question 33

Multiple Choice

The consumer's budget constraint is $6 = 0.50G + P, where G is packs of gum and P is bags of pretzels. The marginal utility of pretzels is MU_P = G^0.5, and the marginal utility of gum is MU_G = 0.5G^-0.5P. The consumer's utility function is U = G^0.5P. the utility-maximizing bundle consists of _____ packs of gum and _____ bags of pretzels.

• A) 8; 2
• B) 4; 4
• C) 2; 5
• D) 6; 3

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Definitions:

Emotional Health

A state of well-being in which an individual is aware of their emotions, can express them appropriately, and manage them effectively, contributing to a positive life outlook.

Beneficial Activities

Tasks or actions that provide positive outcomes or contribute to one's well-being or success.

Caloric Intake

The total amount of calories consumed through foods and beverages over a period of time.

Health Club

A facility offering exercise and fitness equipment, classes, and sometimes additional health and wellness services.