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Andrea has a budget of 21 to spend on toothbrushes and tooth paste. He does not receive any utility from owning a toothbrush, but for
Andrea has a budget of 21 to spend on toothbrushes and tooth paste. He does not receive any utility from owning a toothbrush, but for the consumption of every tube of tooth paste he gains a utility of 2 utils but only if he owns a tooth brush. Without a tooth brush, Andrea gains no utility from consuming tooth paste. In addition, after consuming 10 tubes of tooth paste, a toothbrush needs to be replaced, i.e., Andrea needs to buy a new one. The current price of tooth brushes on the market is 5 and the current price for tooth paste is 1 per tube. Assume that Andrea aims to maximise consumer surplus. r Find Andrea's income-consumption curve for tooth paste tubes for incomes between 0 and 21, assuming a price of 1 per tube. t
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