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1. A bottle of coke costs 10 AED. A slice of pizza costs 5 AED. The table below shows ve different bundles of cokes and
1. A bottle of coke costs 10 AED. A slice of pizza costs 5 AED. The table below shows ve different bundles of cokes and pizzas a student can buy, along with the marginal utilities she derives from consuming them. Bundle Bottles of Coke MU Coke Slices of Pizza MU Pizza A 0 0 8 5 B 1 100 6 15 C 2 80 4 40 D 3 50 2 100 E 4 10 0 0 (a) What is this consumer's income? (b) Draw this consumer's budget line. Plot quantity of coke on the Xaxis and quantity of pizza on the y-axis. (c) What is the slope of the budget line? (d) Find how many bottles of cokes and how many slices of pizza a rational stu dent would consume. Explain. (e) Suppose that the price of coke is now 5 AED, the price of a slice of pizza is now 2.5 AED, while everything else is unchanged. Can you still nd the utility maximizing consumption bundle with the data provided
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