Microeconomics
posted 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.

A good is inferior if
Respond to this Question
Similar Questions

statistics
The caffeine content of a cup of homebrewed coffee is a normally distributed random variable with a mean of 115 mg with a standard deviation of 20 mg. (a) What is the probability that a randomly chosen cup of homebrewed coffee will … 
MATH MIDDLE SCHOOL
I love chocolate and coffee. I begin by making one cup of hot chocolate. I drink half of my cup and then I fill the cup with coffee. I stir the new mixture and drink half of the cup and then fill the cup again with coffee. I continue … 
Math Middle School
Please help me solve this challenge problem: I love hot chocolate and coffee. I began by making one cup of hot chocolate. I drink half of my cup and then I fill the cup with coffee. I stir the new mixture and drink half of the cup … 
Physics Please help!
the coefficient of static friction between the coffee cup and the roof of a car is 0.28, If the maximum acceleration the car can have without causing a cup of coffee (on the top of the car) to slide is 2.7 m/s^. What is the smallest … 
Economics
Here goes... 1. Consider a model in which an individual lives two periods: this period (time one) and next period (time two). This period his budget constraint requires that his consumption, c1; plus his saving, s; equals his income, … 
math
A cup of brewed tea has 54 milligrams less caffeine than a cup of brewed coffee. If a cup of tea has 66 milligrams of caffeine, how much caffeine is in a cup of coffee? 
Algebra
A manufacturer produces a 4cup and 8cup coffee maker. The 4cup maker takes 6 hours to produce and the 8cup takes 9 hours. The manufacturer has at most 500 hours of labor per week. a. Write an inequality to represent the number … 
math
A manufacturer produces a 4cup and 8cup coffee maker. The 4cup maker takes 6 hours to produce and the 8cup takes 9 hours. The manufacturer has at most 500 hours of labor per week. a. Write an inequality to represent the number … 
macro
Assume that the utility function of a consumer is given by U = ln c1 + ln c2 The interest rate is given by 5% and the endowments are given by (y1, y2) = (100, 120). (a) Draw the budget constraint. (b) Calculate the consumption and … 
microeconomics
Budget constraint 1 is faced when price food = 10 and price clothing = 5. Budget constraint 2 is faced when pfood = 40/7 and pclothing = 10. The income is 100 for both budget constraints. Draw both budget constraints. Next, draw the …