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A Question 2: 4 Marks {1, 2, 1] [YOU CAN DRAW YOUR OWN DIAGRAM] Cookie Monster gets utility from oonsuming bookies which are made out
A Question 2: 4 Marks {1, 2, 1] [YOU CAN DRAW YOUR OWN DIAGRAM] Cookie Monster gets utility from oonsuming bookies which are made out of our and sugar. Both inputs are measured in cups. He cannot combine the two ingredients in very different quantities. The ratio of our and sugar it uses must fall between 1:2 and 2:1. Otherwise the bookies will fall apart, and Cookie Monster will get no utility. He must discard ay amounts of the two inputs that outside these ratios. Cookie Monstefs utility from bookies that do nottall apart is: U{F1 S} = FS Where F is the number of cups of our and S the cups of sugar. {a} {1 mark] In the diagram below, draw a red line through all oombinations of our and sugar that are in the ratio 1 to 2. Draw a blue line through combinations of our and sugar that are in the ratio 2 to 1. {ll you do not have colours1 just label them \"red" and "blue".) {b} {2 marks] How much utility does Cookie Monster getfrorn the following bundles of our and sugar: U{2,12)= U{4,1{l)= U{B,4} = U{1,4)= {c} {1 mark} Neatly draw an indifference curve between all combinations of our and sugar that represents the preferences of Cookie Monster and gives him a utility of 3-2. 12 .. III-II . III-II . III-II . III-II . III-II .. III-II D 1 4 E 3 1E] 12
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