Joshua is a utility maximizer and likes ice cream he likes


Joshua is a utility maximizer and likes ice cream. He likes vanilla ice cream, but would happily switch to chocolate ice cream if offered 1 scoop of chocolate ice cream for every scoop of vanilla ice cream he has to give up. He has $5 of income to spend on ice cream If vanilla ice cream costs $1 per scoop and chocolate ice cream costs $2.5 per scoop, Joshua will consume ______ scoops of chocolate and ______ scoops of vanilla ice cream per day.

A) 0; 5

B) 5; 0

C) 2; 0

D) 0; 2

E) None of the above

Solution Preview :

Prepared by a verified Expert
Business Management: Joshua is a utility maximizer and likes ice cream he likes
Reference No:- TGS01660062

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)