Joaquin Consumes Pizza and Beer

question 38

Multiple Choice

Joaquin consumes pizza and beer. His utility function is where P is the number of pizzas and B is the number of glasses of beer. Joaquin has $30, and he plans to spend all of it on pizza and beer today. The price of one pizza is $10, and the price of beer is $3 per glass. Joaquin is allowed to purchase fractions of a pizza by buying individual slices at the same average price (thus, one quarter of a pizza would cost $2.50) . Suppose the price of beer decreases to $2. The total effect is to increase pizza consumption by ____ pizzas and increase beer consumption by ____ beers.

• A) 1.38; 0.28
• B) 1.12; 0.28
• C) 0.54; 1.04
• D) 0; 2.5

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Definitions:

Folic Acid

A B vitamin that is crucial in the production of red blood cells and for the development of a healthy brain and spinal cord, particularly important during early pregnancy.

Neural Tube

An embryonic structure that later develops into the brain and spinal cord.

Fetus's Bones

The developing skeletal structure within the fetus, which begins as cartilage and undergoes ossification to become bone by birth.

Tactile Contact

Physical touch or the act of coming into contact with something through the skin.