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Joaquin Consumes Pizza and Beer

question 64

Multiple Choice

Joaquin consumes pizza and beer. His utility function is $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 $2. The substitution effect is to decrease pizza consumption by ____ pizzas and increase beer consumption by ____ beers. A) 1.12; 0.28 B) 1; 1 C) 0.54; 1.04 D) 0.28; 1.12$ 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 substitution effect is to decrease pizza consumption by ____ pizzas and increase beer consumption by ____ beers.

Definitions:

Bile

A digestive fluid produced by the liver, stored in the gallbladder, and released into the small intestine, important for the digestion and absorption of lipids.

Enzymatically

Pertaining to the process or action facilitated by enzymes, which are proteins that catalyze biochemical reactions.

Jejunum

The middle section of the small intestine in most higher vertebrates, including humans, where the absorption of nutrients and minerals from digested food occurs.

Chyme

The semi-fluid mass of partly digested food that moves from the stomach to the small intestine.