How many coffee cups do you purchase

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Question - Cherry pie and Coffee budget constraint

Imagine you are one individual looking to purchase some of the only two goods in your economy, cherry pies and coffee. Your income is $90. You hear that the pies in town are the best in the country, so you buy one pie for the absorbitant price of $30. You have invited your entire class over for pie and coffee, so you stop by a café on your way home and purchase as many coffee cups as you can afford. They cost $3 per cup. How many coffee cups do you purchase?

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The client required the solution to a budget constraint problem. The two products were cherry pie and coffee. The price of cherry pie, coffee was given. Individual's income was also given. And we had to find out the consumption of number of cups coffees. The classic budget constraint was used assuming that the individual exhausts his income. This gave us the solution of the number of coffee cups consumed by the individual.

Reference no: EM131888046

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