Answer to Question 1
In equilibrium, the ratio of the marginal utility of a pizza divided by the price of a pizza must equal the marginal utility of a burrito divided by the price of a burrito. Thus, the price of a burrito must be 2.
Answer to Question 2
The marginal utility of pizza equals B0.5/2P0.5. The marginal utility of a burrito equals P0.5/2B0.5. In equilibrium, the ratio of the marginal utilities will equal the ratio of prices. The ratio of marginal utilities simplifies to B/P. The ratio of prices is 10/5. Since we know that Lisa consumes 4 pizzas, she must consume 8 burritos.
Othmer’s Equilibrium Still Schematic Diagram
A utility knife uses replaceable blades and can cut carpet and other materials.
An 80-g aluminum calorimeter contains 380 g of water at an equilibrium temperature of A piece ...
Write equilibrium constant expressions for the following reactions in terms of concentration:
Hardy–Weinberg Equilibrium Genotype Frequencies for Three Alleles of a Gene
Pizza Slices