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Emma always likes to drink tea and eat donuts in fixed proportions. In particular, she always has half a donut with each tea she drinks.
Emma always likes to drink tea and eat donuts in fixed proportions. In particular, she always has half a donut with each tea she drinks. Having more than half a donut with her tea, or, having more than one tea per half a donut doesn't increase her utility. She has a weekly budget of $20 for tea and donuts, each donut costs $0.50 and each tea costs $1. How much tea should she buy per week? how many donuts? Draw a diagram of your solution.Draw an Engel curve for tea. Make sure to carefully label the axis, as well as the slope
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