Brian is grabbing beer for his party tonight. He can choose PBR (P) AND Natural Light ( N). Brian has $160 to spend, PBR IS $0.8 a can and Natural Light is $0.5. For Brian, PBR and Natural Light are the same thing. ( He has no preference of one over the other). His utility is therefor:U(P,N) = P+Na. What is Brian’s best feasible bundle?b. Holding constant the price of Natural Light, what will be the new optimal bundle if the price of PBR is now half off per can?c. If the price of PBR and Natural Light double, What’s Brian’s best feasible bundle?
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