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3. Suppose that a consumer has a choice between gallon jugs of milk and half-gallon jugs of milk. The consumer only cares about how much
3. Suppose that a consumer has a choice between gallon jugs of milk and half-gallon jugs of milk. The consumer only cares about how much milk she consumes and does not care about the size of the jug. a. Write a utility function for this consumer. b. Suppose that the price of a half-gallon jug of milk is $2, and price of a gallon jug of milk is $5, and the consumer has $10 to spend on milk. Solve for the consumer's optimal bundle. 4. Suppose the consumer desires one eraser for every three pencils she uses. She cannot enjoy the pencils without the eraser, and she gets no additional utility from having more than one eraser for every three pencils. Her preferences therefore can be represented by the utility function U=min{3E,P} where E is the number of erasers she consumes, and P is the number of pencils she consumes. Suppose the price of erasers is $2, the price of pencils is $1, and the consumer's income is $10. Solve for the consumer's optimal bundle
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