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Business, 01.10.2019 16:10 oliviasoreo92

Each day paul, who is in third grade, eats lunch at school. he likes only twinkies (t) and soda (s), and these provide him a utility of u(t, s) √ ts. (a) if twinkies cost $0.10 each and soda costs $0.25 per cup, how should paul spend the $1 his mother gives him to maximize his utility? (b) if the school tries to discourage twinkie consumption by increasing the price to $0.40, by how much will paul’s mother have to increase his lunch allowance to provide him with the same level of utility he received in part (a)?

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Each day paul, who is in third grade, eats lunch at school. he likes only twinkies (t) and soda (s),...
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