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# Greta is a vegan who loves to make veggie burgers from assorted vegetables and beans. Greta's preferences for

protein sources include Lentils (L) and Tofu (T), and are represented by the utility function U = 2L + 6T. Both L and are measured in KG. Suppose that Greta has \$50 to spend on food this week. The grocery store is advertising prices per kg of PL =\$4.50 and PT =\$12.00

(a) What is Greta's Marginal Rate of Substitution? What kinds of goods Greta considers these to be?

(b) W hat is Greta's budget line, and Greta's optimal bundle. How to draw the indifference curve that represents Greta's utility when choosing the optimal bundle.

(c) if Greta is paying for food at the farmer's market when the wind picks up, blowing \$10 from her hand. How did Greta's budget constraint change? How to draw a new graph depicting the change?

(d) If Greta has to choose a new optimal bundle after losing the \$10, how would the mixture of the two goods he chooses change?

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