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Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
النسخة 12الرقم المعياري الدولي: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
النسخة 12الرقم المعياري الدولي: 978-1133189022 تمرين 17
Caffeine enjoys coffee (C) and tea (T) according to the function U(C, T) = 3C + 4T.
a. What does her utility function say about her MRS of coffee for tea? What do her indifference curves look like?
b. If coffee and tea cost $3 each and Ms. Caffeine has $12 to spend on these products, howmuch coffee and tea should she buy to maximize her utility?
c. Draw the graph of her indifference curve map and her budget constraint, and show that the utility-maximizing point occurs only on the T-axis where no coffee is bought.
d. Would this person buy any coffee if she had more money to spend?
e. How would her consumption change if the price of coffee fell to $2?
a. What does her utility function say about her MRS of coffee for tea? What do her indifference curves look like?
b. If coffee and tea cost $3 each and Ms. Caffeine has $12 to spend on these products, howmuch coffee and tea should she buy to maximize her utility?
c. Draw the graph of her indifference curve map and her budget constraint, and show that the utility-maximizing point occurs only on the T-axis where no coffee is bought.
d. Would this person buy any coffee if she had more money to spend?
e. How would her consumption change if the price of coffee fell to $2?
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a.
The consumer enjoys coffee (C) and te...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
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