Question

What consumption bundles give Bertha exactly 100 units of utility, according to her utility function u = st 5s?

Answer 1

The student seeks the consumption bundles that yield 100 units of utility from Bertha's utility function u = st + 5s. To find these, one must solve the equation 100 = st + 5s for the values of 's' and 't' that satisfy the total utility of 100.

Step-by-step explanation:

The student is asking about the consumption bundles that provide exactly 100 units of utility according to Bertha's utility function, which is u = st + 5s. To find these, we set the utility function equal to 100 and solve for the combinations of 's' (a good or service) and 't' (another good or service) that satisfy this equation.

The equation we solve is:

• 100 = st + 5s

First, we can subtract 5s from both sides to get:

• 100 - 5s = st

Now, to find specific values of 's' and 't' that satisfy this equation, we can divide both sides by 's' (assuming s is not zero) to determine 't':

• t = (100 - 5s) / s

From this, for any value of 's', we can calculate a corresponding value of 't' that will give us the desired utility of 100. This is how we would find consumption bundles that give Bertha exactly 100 units of utility.