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

question 18

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 four pizzas.Using Lisa's utility function,calculate how many burritos she consumes.

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Definitions:

Financial Resources

Assets or funds available to an individual, organization, or project for the purpose of fulfilling objectives, covering expenses, or investing.

Raw Materials

Basic materials extracted from the environment or farmed, which are used in the initial stages of the production process.

Ethical Concerns

Issues pertaining to the principles of right and wrong behavior, particularly regarding conduct in professional and business contexts.

Industrial Pollution

The release of harmful substances and pollutants into the environment as a result of industrial activities, leading to environmental degradation and health risks.