Question: Question One (7 Marks) Ms Caffeine enjoys coee (C) and tea (T) according to the function U( T, C) = 41 + 3C. (a) What

Question One (7 Marks) Ms Caffeine enjoys coee (C) and tea (T) according to the function U( T, C) = 41" + 3C. (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 $3 each, and MS. Caffeine has $12 to spend on these products, how much coffee and tea should she buy to maximise her utility? (c) Draw the graph of her indifference curve and budget constraint showing the utility- maximising point. ((1) How would her consumption change if the price of coffee fell to $2

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