Suppose you have the following utility for bananas (b) and cars (c): U=max(b,c). Suppose the price of a banana is 2 liras and the price of a car is 100 liras. You have a 1000 liras. Please find the Walrasian demand for bananas and cars. Please show all your calculations.

Suppose you have the following utility for bananas (b) and cars (c): U=max(b,c). Suppose the price of a banana is 2 liras and the price of a car is 100 liras. You have a 1000 liras. Please find the Walrasian demand for bananas and cars. Please show all your calculations.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose you have the following utility for bananas (b) and
cars (c): U=max(b,c). Suppose the price of a banana is 2 liras
and the price of a car is 100 liras. You have a 1000 liras. Please
find the Walrasian demand for bananas and cars. Please show all
your calculations.

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