Your professor has $20 to spend on Sour Patch Kids and Cherry Coke Zero, the two supplies most useful in the production of economics papers. Cherry Coke Zero costs $1.50. Sour Patch Kids cost $2.50. The professor gets utility from the goods as follows: Quantity of Cherry Total Utility Marginal Utility of Marginal Utility per Quantity of Sour Total Marginal Marginal Utility Utility of Utility per Coke from Cherry Dollar for Patch from Sour Sour Dollar for Zero Cherry Coke Cherry Kids Patch Patch Sour Coke Zero Coke Kids Kids Patch Zero Zero Kids 0 0 X X 0 0 X X 1 15 1 35 2 27 2 62.5 3 36 3 82.5 4 42 4 95 5 45 5 100 6 45 6 97.5 (Some columns were left empty. You may, but are not required to, fill them in if you will find it helpful to do so.) a) Write the professor's budget constraint. b) Sketch the professor's budget constraint. c) What is the opportunity cost of one Cherry Coke Zero?

Your professor has $20 to spend on Sour Patch Kids and Cherry Coke Zero, the two supplies most useful in the production of economics papers. Cherry Coke Zero costs $1.50. Sour Patch Kids cost $2.50. The professor gets utility from the goods as follows: Quantity of Cherry Total Utility Marginal Utility of Marginal Utility per Quantity of Sour Total Marginal Marginal Utility Utility of Utility per Coke from Cherry Dollar for Patch from Sour Sour Dollar for Zero Cherry Coke Cherry Kids Patch Patch Sour Coke Zero Coke Kids Kids Patch Zero Zero Kids 0 0 X X 0 0 X X 1 15 1 35 2 27 2 62.5 3 36 3 82.5 4 42 4 95 5 45 5 100 6 45 6 97.5 (Some columns were left empty. You may, but are not required to, fill them in if you will find it helpful to do so.) a) Write the professor's budget constraint. b) Sketch the professor's budget constraint. c) What is the opportunity cost of one Cherry Coke Zero?

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter5: Consumer Choice: Individual And Market Demand

Section: Chapter Questions

Problem 3DQ

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