Budget Constraint
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Mrs. Hotdrinks enjoys coffee (C) and tea (T) according to the function U(C.T)= 3C + 4T. Her drinks budget is $5 per day, the price of a cup of coffee is $1, and the price of a cup of tea is $1. Explain the number of C's and T's she'll buy daily.
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Solution Summary
The expert examines the budget constraints for Mrs. Hotdrinks buying coffee.
Solution Preview
Here, you can see that one unit of C gives her an additional 3 utilities, and one unit of T ...
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