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Question Help Joe has $32.00 to spend on Twinkies and Ho-Hos. Twinkies have a price of $2.00 per pack and Ho-Hos have a price
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Answer #1
HO-HOS MU MU/P TWINKIES MU MU/P
2 16 4 1 10 5
4 12 3 2 8 4
6 8 2 3 6 3
8 4 1 4 4 2
10 0 0 5 2 1

The utility is maximized where MU/P for both the goods are same

Budget = 32

Joe should buy 4 units of twinkies and 6 units of Ho-Hos

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