Tyrion can either buy wine or pay for female companions. Wine costs 10 gold drag

Question

Tyrion can either buy wine or pay for female companions. Wine costs 10 gold dragons and female companions cost 100 gold dragons. When all of his income is spent, Tyrion figures that his marginal utility from female companions is 80 and his marginal utility from wine is 20. He could increase his utility by a) spending more on wine and less on female companions b) spending less on wine and less on female companions c) spending more on wine and more on female companions d) spending less on wine and more on female companions

Explanation / Answer

Equilibrium condition

MUf/Pf = MUw /Pw

80/100 =20/10

.8 #2

Here Asnwer is (a)

Spending more on wine and less on famale

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.