Lisa Consumes Only Pizzas (P)and Burritos (B)

question 47

Essay

Lisa consumes only pizzas (P)and burritos (B).Her utility function is U = P^0.5 B^0.5.The price of per pizza is $10 and the price per burrito is $5.In equilibrium,Lisa consumes 4 pizzas.Using Lisa's utility function,calculate how many burritos she consumes.

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Definitions:

Unemployment

The situation in which individuals who are capable of working and are actively seeking work remain un-hired.

Money Growth

The increase in the amount of money in an economy over time.

Unemployment Compensation

Financial payments provided to individuals who have lost their jobs until they find new employment.

Consumption Expenditures

The total amount spent by consumers on goods and services for personal use, often considered a major component of gross domestic product (GDP).