2-Your sweetheart Kris (Kristopher or Kristine as you prefer) enjoys two kinds of dates: a one-hour coffee rendezvous at Aromas (P_A= $12), and going off campus for dinner (P_D= $24).Kris' utility function is U = (1/2)ln(A) + (1/3)ln(D).Your job is to figure out how to allocate this semester's$480 love budgetbetween these two kinds of dates in a way that will maximize Kris' utility.

In your graphs and calculations, put A on the X-axis.

Suppose you and Kris are considering A = 20 coffee dates and D=10 dinners out.Show that this bundle isaffordable, but not optimal.Using the MRS at this bundle and the information about prices, propose an affordable shift in consumption that would increase Kris' utility (a "slopes trade").