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3. Finding consumer equilibrium Sharon enjoys consuming both cheese and fruit. Each pound of cheese costs Pc = $1, and each pound of fruit costs

3. Finding consumer equilibrium Sharon enjoys consuming both cheese and fruit. Each pound of cheese costs Pc = $1, and each pound of fruit costs PF = $2. Suppose that Sharon buys 300 pounds of cheese and 200 pounds of fruit per year. The following graphs show her marginal utility curves for cheese and fruit. At her current consumption level, Sharon's marginal utility from consuming the last pound of cheese she bought is MUc = 30 utils per pound, and her marginal utility from consuming the last pound of fruit she bought is MUF = 30 utils per pound. (? 60 60 50 50 Tips 40 40 MU OF CHEESE (Utils per pound) 30 MU OF FRUIT (Utils per pound) Tips 20 20 10 10 100 200 300 400 . 500 600 100 200 300 400 500 600 T CHEESE (Pounds per year) FRUIT (Pounds per year)

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