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Hello. I'm really confused on how to approach this question, particularly part C. Any help would be heavily appreciated. Quiz: Pre-Test #3 Submit Quiz This

Hello. I'm really confused on how to approach this question, particularly part C. Any help would be heavily appreciated.

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Quiz: Pre-Test #3 Submit Quiz This Question: 1 pt 12 of 17 This Quiz: 20 pts possible Mikaela drinks 10 sodas and 4 smoothies. Yesterday smoothies were $5 each and sodas were $2 each. Today things are different: The government has implemented a tax on sodas and their price has doubled to $4. The government has also revised the income tax so that Mikaela's income has increased. She can now afford to buy her usual 10 sodas and 4 smoothies per week. Part A What is Mikaela's income today? $ 60 Part B Suppose smoothies are measured on the y-axis and sodas are measured on the x-axis. What is the absolute value of the slope of Mikaela's budget constraint today? |1.25 Part C Suppose Mikaela has discovered a new love for coffee and tea and would like to add both to her weekly beverage consumption. Coffee costs $2/cup and tea costs $1.50/cup. Mikaela would like to maximize utility given her income. If the marginal utility from consuming sodas is 8 and the marginal utility from consuming smoothies is 10, Mikaela should consume cups of coffee and cups of tea. Quantity 1 2 3 4 5 Total utility: Coffee 40 60 70 74 74 Total utility: Tea 50 80 95 100 103

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