Boris budgets $9/wk for his morning coffee with milk. He likes it only if it is prepared with 4 parts coffee, 1 part milk. Coffee costs $1/oz, milk $0.50/oz. How much coffee and how much milk will Boris buy per week? How will your answers change if the price of coffee rises to $3.25/oz? Show your answers graphically.
Answer to relevant QuestionsThe federal government wants to support education but must not support religion. To this end, it gives the University of Notre Dame $2 million with the stipulation that this money be used for secular purposes only. The ...At your school’s fund- raising picnic, you pay for soft drinks with tickets purchased in advance—one ticket per bottle of soft drink. Tickets are available in sets of three types: Small: $3 for 3 tickets Medium: $4 for 5 ...Sue consumes only two goods, food and clothing. The marginal utility of the last dollar she spends on food is 12, and the marginal utility of the last dollar she spends on clothing is 9. The price of food is $1.20/unit, and ...True or false: For a budget spent entirely on two goods, an increase in the price of one will necessarily decrease the consumption of both, unless at least one of the goods is inferior. Explain.Suppose that at a price of $400, 300 tickets are demanded to fly from Ithaca, New York, to Los Angeles, California. Now the price rises to $600, and 280 tickets are demanded. Assuming the demand for tickets is linear; find ...
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