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A consumer's utility derived from the consumption of hot dogs (X) and tea (Y) is described by the utility function U = X 31'. A
A consumer's utility derived from the consumption of hot dogs (X) and tea (Y) is described by the utility function U = X 31'. A hot dog and tea cost 15 CZK and 20 CZK, respectively. The consumer is Willing to spend 240 CZK for these two goods. a} Explain whether the consumer prefers consumer bundle A (1 hot dog and 2 cups of tea) or consumer bundle B (2 hot dogs and 1 cup of tea). b} Is the consumer in his optimum when he consumes 8 hot dogs and 2 cups of tea? Explain your statement. c} If not, calculate how many hot dogs and cups of tea the consumer should consume in his optimum
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