Sam's extended family spends $3,200 per month on wine and beer. Their utility function is given by U=200WB, where W represents the number of bottles of wine that they buy, and B represents the number of cases of beer that they buy. Wine costs $25 per bottle and beer costs $32 per case. Sam's family wants to maximize their utility. Calculate how many bottles of wine and how many cases of beer they should buy. Show your calculation(s).

Sam's extended family spends $3,200 per month on wine and beer. Their utility function is given by U=200WB, where W represents the number of bottles of wine that they buy, and B represents the number of cases of beer that they buy. Wine costs $25 per bottle and beer costs $32 per case. Sam's family wants to maximize their utility. Calculate how many bottles of wine and how many cases of beer they should buy. Show your calculation(s).

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 8SQP

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