# Our old friend, edmund stench, of chapter 2 loves punk rock video

1. Our old friend, Edmund Stench, of Chapter 2 loves punk rock video tapes. He has no income and therefore has to accept garbage in his backyard in return for money. Each video tape cost \$2 and each sack of garbage that he accepts brings him \$1. His utility function is given by U(c, g) = min{2c, 20 – g}, where c is the number of video tapes and g is the number of sacks of garbage that he gets per month. Each month he will choose to accept
A. 20 sacks of garbage. B. no garbage. C. 5sacksofgarbage. D. 10 sacks of garbage. E. 15 sacks of garbage.

2.18. 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 ofBud 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
answer is A, PLEASE TELL ME WHY, AND HOW TO GET IT

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