Question: Suppose that a consumer i s choosing between one - gallon jugs o f milk and half - gallon jugs o f milk. She only

Suppose that a consumer is choosing between one-gallon jugs of milk and half-gallon
jugs of milk. She only cares about how much milk she consumes. Let G denote the
number of one-gallon jugs consumed, and let H denote the number of half-gallon jugs
consumed.
a$3, the price of a one-gallon jug of
milk is $5, and the consumer has $10to spend on milk. Solve for the consumer's optimal
bundle. Hint: when do the half-gallon jugs (vs. the one-gallon jugs) provide better
value for money?
cGon the horizontal axis and Hon
the vertical axis; label the horizontal and vertical intercepts. What is the marginal rate of
substitution (MRS)ofG for H for this consumer, and what does that mean economically?
Suppose that a consumer i s choosing between one

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