Question
4) Suppose we have two consumers, Barry and Hank. Barry only consumes coffee (x 1 ) with one teaspoon of sugar (x 2 ). Hank
4) Suppose we have two consumers, Barry and Hank. Barry only consumes coffee (x
1
) with
one teaspoon of sugar (x
2
). Hank also consumes coffee with only a certain amount of sugar,
but you don't know what that amount is. That is, coffee and sugar are perfect complements
for both consumers. Both Barry and Hank have $45.50 in income, the price of coffee is $3, and
the price of sugar is $0.50 per teaspoon. Hank ultimately consumes one more cup of coffee
with sugar than Barry.
With how many teaspoons of sugar does Hank always drink coffee with? (10 points)
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