Asked by Daniel
Given the utility function
U(C,T) = 3C+2T
A budget constraint of $50, C = coffee which is $2 a cup, and T = tea which is $1.25 a cup, what is the optimal consumption bundle, and maximum utility possible?
Also derive an expression for the demand curve for coffee given the price of tea and the budget constraint.
U(C,T) = 3C+2T
A budget constraint of $50, C = coffee which is $2 a cup, and T = tea which is $1.25 a cup, what is the optimal consumption bundle, and maximum utility possible?
Also derive an expression for the demand curve for coffee given the price of tea and the budget constraint.
Answers
Answered by
Anonymous
A good is inferior if
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