d) If we want to model Caroline's optimal candy-choice problem as a utility maximization problem (UMP): ● What would be the objective function and the constraint of this problem? ● Formally (with notation) write the statement of her optimal choice problem. Conceptually (in words), rewrite the statement of her optimal choice problem. [Hint: Review notes/slides/exercise from D01 to see how we describe and write optimization problems] e) Mathematically, solve Caroline's UPM to find her optimal candy-bundle today. f) What is level of utility Caroline gets from consuming her optimal bundle found in part (e)? ●
d) If we want to model Caroline's optimal candy-choice problem as a utility maximization problem (UMP): ● What would be the objective function and the constraint of this problem? ● Formally (with notation) write the statement of her optimal choice problem. Conceptually (in words), rewrite the statement of her optimal choice problem. [Hint: Review notes/slides/exercise from D01 to see how we describe and write optimization problems] e) Mathematically, solve Caroline's UPM to find her optimal candy-bundle today. f) What is level of utility Caroline gets from consuming her optimal bundle found in part (e)? ●
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 4CQ
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