Sabrina utility from consuming cookies and milk

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Reference no: EM133616589

Question

Optimal consumption. Sabrina's utility from consuming cookies (C) and milk (M) is described by the following information: Utility function = 2CM Marginal utility of cookies (MUC) = 2M Marginal utility of milk (MUM) = 2C Sabrina's income is initially equal to $100 and the price of cookies is $5 per unit and the price of milk is $10 per unit. (a) Given the above information, write an equation for Sabrina's budget line. Let's refer to this budget line as BL1. In your work, measure cookies on the horizontal axis and milk on the vertical axis.

Reference no: EM133616589

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