Question: 1. For this exercise you'll be drawing a graph where we represent amounts of cookies purchased on the horizontal axis and amounts of coffee purchased

1. For this exercise you'll be drawing a graph where we represent amounts of cookies purchased on the horizontal axis and amounts of coffee purchased on the vertical axis. Ben's indifference curves all have a constant slope of -1. Draw a set of Ben's indifference curves and draw Ben's budget constraint if cookies cost $1 and coffee costs $2 and Ben has $12 available to spend.

2. What does Ben optimally purchase? Explain.

3. Suppose Ben is currently consuming two cookies and 1 coffee. At this point, Ben's marginal utility of cookies is 4 and Ben's marginal utility of coffee is Using the prices from above:cookies cost $1 and coffee costs $2, how would you advise Ben to adjust his consumption if Ben wishes to optimize? Explain.

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