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1. Suppose that tea and sugar are perfect complements and that a consumer will only consume 1 cup of tea with 2 cubes of
1. Suppose that tea and sugar are perfect complements and that a consumer will only consume 1 cup of tea with 2 cubes of sugar. The price of tea is $1/cup. (You can assume that tea and sugar are perfectly divisible goods). The price of sugar is $0.05 per cube. A consumer has set aside $66 per month to spend on tea that is sweetened to perfection. Graphically depict the consumer's set of feasible consumption, the budget line, and 2 indifference curves, including the utility-maximizing indifference curve, indicating both graphically and numerically the optimal consumption of tea and sugar and the horizontal and vertical intercepts of the budget line..
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