Q 18

Leo's utility function is min{x, 3y + 2z}. The price of x is $1, the price of y is $9, and the price of z is $8. Leo's income is $8. How many units of x does Leo demand?
A) 2
B) 1.60
C) 5
D) 7
E) None of the above.

Q 19

Peter consumes no commodities other than Miller Lite and Bud Light. His annual budget for these two commodities is described by the equation 5x + 30y = 300, where x is sixpacks of Miller Lite and y is cases of Bud Light. Peter considers 2 cases of Bud Light to be perfect substitutes for 6 sixpacks of Miller Lite.
A) He will consume 60 sixpacks of Miller Lite per year.
B) He will consume 10 cases of Bud Light per year.
C) He will consume 14 cases of Bud Light per year.
D) He will consume 12 sixpacks of Miller Lite per year.
E) He is indifferent between any two bundles that use up his entire income.

Q 20

Roger consumes no commodities other than Miller Lite and Bud Light. His annual budget for these two commodities is described by the equation 5x + 25y = 300, where x is sixpacks of Miller Lite and y is cases of Bud Light. Roger considers 2 cases of Bud Light to be perfect substitutes for 6 sixpacks of Miller Lite.
A) He will consume 12 cases of Bud Light per year.
B) He will consume 12 sixpacks of Miller Lite per year.
C) He will consume 16 cases of Bud Light per year.
D) He will consume 60 sixpacks of Miller Lite per year.
E) He is indifferent between any two bundles that use up his entire income.