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Business, 06.11.2019 01:31 dcardenas2005

John’s car has an average of 40 miles per gallon (mpg) when using gas from allen’s station and an average of 50 mpg when using gas from bob’s station. john’s preferences are such that he only wants to drive as far as possible given his budget. the gas price is pa dollars at allen’s station and pb dollars at bob’s station. john has a total income of i. write down a utility function u(a, b) that represents john's preferences for gal lons of gas consumed at allen's station, a, and gallons of gas consumed at bob's station b. (hint: treat a and b as two standard consumption goods and find the utility that describes john's preferences for those goods.)

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