AASTU Assignment II
AASTU Assignment II
AASTU Assignment II
Introduction to Economics
Assignment II Max. Value 10%
1. Suppose Bilen frequently visits Tomoca coffee corner, a favorite coffee shop in Addis
Ababa, to buy and consume coffee. The information about the total utility Bilen gains
from coffee is given in the table below:
2. Consider that Abebe consumes two goods, cloth (Good X) and pizza (Good Y). The price of
cloth and pizza are 2 Birr and 4 Birr respectively. Assume also that Abebe has a total income
of 100 Birr. He faces a preference represented by U (X, Y) = X1/3Y2/3