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