Question: 2 . 5 Ms . Caffeine enjoys coffee ( C ) and tea ( T ) according to the function U ( C , T
Ms Caffeine enjoys coffee and tea according to the function
a What does her utility function say about her MRS of coffee for tea? What do her indifference curves look like?
b If coffee and tea cost $ each and Ms Caffeine has $ to spend on these products, how much coffee and tea should she buy to maximize her utility?
c Draw the graph of her indifference curve map and her budget constraint, and show that the utilitymaximizing point occurs only on the axis where no coffee is bought.
d Would this person buy any coffee if she had more money to spend?
e How would her consumption change if the price of coffee fell to $
CAN YOU SHOW THE WORK AND GRAPH PLEASE THANK YOU SO MUCH!
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