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Unformatted text preview: Coee Bean on the vertical axis, plot Uncle Milts indierence curves for coee. 2 points What mathematical relationship between x ST and x CB must hold for Uncle Milt to be optimizing his choice of coee? 2 Question 2 Your weird Uncle Milt has grown unhappy with Starbucks. Because of this, he wants to spend (exactly) twice as much money at Coee Bean as at Starbucks. 2 points Draw his new indierence curves, with Starbucks coee on the horizontal axis, and Coee Bean coee on the vertical axis. 2 points What mathematical relationship between x ST and x CB must hold for Uncle Milt to be optimizing his consumption of coee? 2 points What is one possible utility function that represents Milts new preferences for coee? 3...
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This note was uploaded on 01/31/2010 for the course ECON 100A/ 100B taught by Professor Staff during the Winter '08 term at UCSB.
- Winter '08