12. Suppose Bill views butter (b) and margarine (m) as perfectly substitutable for each other.
His utility function is U(b,m)=b+m
If butter costs $2 per package, while margarine costs only $1, and Bill has a $20 budget to spend for the
month, how many packages of butter and margarine will he choose?
U(b, m) = b+m applying the cost constraint b*2 + m*1 = 20 also, b+m... View the full answer