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F-8.Illustrate Sue's new budget constraint and indifference curve in a diagram from the data inProblem F-3.Illustrate also the utility-maximizing combination of goods. F-10.Using your answer

F-8.Illustrate Sue's new budget constraint and indifference curve in a diagram from the data inProblem F-3.Illustrate also the utility-maximizing combination of goods.

F-10.Using your answer toProblem F-8, draw Sue's demand curve for soft drinks.

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of which yields the same level of utility. Calculate Sue's marginal rate of substitution of soft drinks for bottled water at each rate of consumption of water {or soft drinks}. Relate the marginal rate of substitution to marginal utility. Combination Bottl d . of Bottled Wate e er Soft Drinks grass; M... Wm A 5 1] B 10 7 C 15 4 D 20 2 E 25 1 F -4. Using the information provided in Problem F- 3, illustrate Sue's indifference curve, with water on the horizontal axis and soft drinks on the vertical axis. F -5. Sue's monthly budget for bottled water and soft drinks is $23. The price of bottled water is $1 per bottle, and the price of soft drinks is $2 per bottle. Calculate the slope of Sue's budget constraint. Given this information and the information provided in Problem F-3, nd the combination of goods that satisfies Sue's utility- rnaxirnization problem in light of her budget constraint. F -6. Using the indifference curve diagram you constructed in Problem F-4, add in Sue's budget constraint using the information in Problem F-S. Illustrate the utility-maximizing combination of bottled water and soft drinks. F -'7. Suppose that at a higher satisfaction level than in Problem F-3, Sue's constant-utility preferences are as shown in the table below. Calculate the slope of Sue's new budget constraint using the information provided in Problem F-5. Supposing now that the price of a soft drink falls to $1 , find the combination of goods that satisfies Sue's utility-maximization problem in light of her budget constraint. Combination Bottled warms m er mass Drinks A 5 22 B 10 14 C 15 8 D 20 4 E 25 2 F-. Illustrate Sue's new budget constraint and indifference curve in a diagram from the data in Problem F-3. Illustrate also the utility-maximizing combination of goods. F-9. Given your answers to Problems F5 and E7, are Sue's preferences for soft drinks consistent with the law of demand? F-l. Using your answer to Problem F-S, draw Sue's demand curve for soft drinks

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