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