Question: The Rational Consumer - End of Chapter Problem Cal Cool Cooper has $200 to spend on Nikes and sunglasses. Each pair of Nikes costs $100

The Rational Consumer - End of Chapter Problem Cal "Cool" Cooper has $200 to spend on Nikes and sunglasses. Each pair of Nikes costs $100 and each pair of sunglasses costs $50. Utility from sunglasses Quantity of Nikes (pairs) Utility from Nikes (utils) Quantity of sunglasses (pairs) (utils) 0 0 O 0 400 800 2 700 4 900 a. Draw Cal's budget line. Cal's Budget Line 5.0 4.0 3.0 Quantity of Nikes (pairs) 2.0 1.0Cal's Budget Line 5.0 4.0 3.0 Quantity of Nikes (pairs) 2.0 1.0 0.0 0.0 1.0 2.0 3.0 4.0 5.0 Quantity of sunglasses b. Use the utility-maximizing principle of marginal analysis to decide what bundle Cal will purchase. pairs of Nikes pairs of sunglasses

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