Posted by **Daniel** on Thursday, August 14, 2008 at 6:20am.

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.

- Microeconomics -
**Anonymous**, Thursday, August 14, 2008 at 8:57pm
A good is inferior if

## Answer This Question

## Related Questions

- statistics - The caffeine content of a cup of home-brewed coffee is a normally ...
- microeconomics - Budget constraint 1 is faced when price food = 10 and price ...
- Economics - Here goes... 1. Consider a model in which an individual lives two ...
- math - A cup of brewed tea has 54 milligrams less caffeine than a cup of brewed ...
- MATH MIDDLE SCHOOL - I love chocolate and coffee. I begin by making one cup of ...
- Math Middle School - Please help me solve this challenge problem: I love hot ...
- math - A manufacturer produces a 4-cup and 8-cup coffee maker. The 4-cup maker ...
- Algebra - A manufacturer produces a 4-cup and 8-cup coffee maker. The 4-cup ...
- science -chemistry - Mr. Currie pours himself some coffee into a paper cup ...
- math grade 12 - Mr. Currie pours himself some coffee into a paper cup before ...

More Related Questions