DSE 2005

Posted by Devika on May 07, 2013; 9:00am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2005-tp7580451.html

Somebody please explain the following question. I know its a very simple question, and i managed to do it, but need to different and a better approach to solve it.

Q15- Consider Ms. Bijlee whose utility fn is min{E.W}, where E is electricity consumption and W- Widgets. Income is 10 and price of E and W are 1. In order to curb Ms. Bijlee's electricity consumption, the electricity company decides to impose a surcharge of RE.1 on every unit of electricity consumed in excess of 4 units. What is the resulting reduction in Ms. Bijlee's electricity consumption?
a)1/4
b)1/5
c)1/3
d)1/6