Billie joe loves krispy kreme donuts and coffee billie joe, Ask an Expert

Economics

Billie Joe loves Krispy Kreme donuts and coffee. Billie Joe likes to eat 3 donuts (D) for each cup of coffee (C) he drinks. His utility function is: U = min(0.333D, C).

a. Draw three indifference curves for Billie Joe, where I3 \succ I2 \succ I1

b. The price of each donut is $0.60 and the price of coffee is $2.20. Given Billie Joe has $40 in income, find his optimal bundle of coffee and donuts.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91423095

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