Find a utility function that represents these preferences

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Reference no: EM133366692

Question: An of?ce worker is shopping for their mid-day snacks. Throughout the day, they love drinking coffee and eating cookies. In particular, they like to eat exactly three cookies per cup of coffee. If they eat more than 3 cookies for each cup of coffee, they simply do not enjoy the excess. The same is true for coffee if they drink it without enough cookies.

(a) If the office worker has a weekly budget of $50 for snacks, the price of a cup of coffee is $2 and the price of a cookie is $1, what is their optimal consumption choice?

(b) Graph their budget constraint, their optimal bundle, and the indifference curve at the optimal bundle.

Reference no: EM133366692

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