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Is Ginny currently maximizing her utility? No; she could buy less soda and more coffee, not spend any more money, and be better off. No;
Is Ginny currently maximizing her utility? No; she could buy less soda and more coffee, not spend any more money, and be better off. No; she likes coffee and soda more than other goods, so she should buy more of both. 0 No; she could buy more soda and less coffee, not spend any more money, and be better off. Yes; the marginal utility she receives from her last can of soda equals that of her last cup of coffee. For each of the sllowing combinations of soda and coffee, calculate the marginal utility per dollar from the last can of soda and the last cup of coffee. Then, use the dropdown menus in the last column to indicate which of the combinations satisfy the condition for consumer equilibrium. Soda Coffee Combination (Cans) :1st (Cups) A1,\": Consumer Equilibrium? A 20 16 30 5 False V B 40 B 20 5 False V C 30 12 30 5 False V D 50 4 4O 4 True V Suppose Ginny has a "caffeine l:iudget'I of $130 per week, which she spends on soda and coffee. To maximize her utility, Ginny will purchase cans of soda and cups of coffee per week. 10. Deriving demand from an indifference map Eileen lives in Philadelphia and enjoys drinking lattes and eating scones. The price of a latte is held constant at $4 throughout this problem. On the following diagram, the purple curves (/1 and /2 ) represent two of Eileen's indifference curves. The lines BL1 and BL2 show two budget lines. Points X and Y show Eileen's consumer equilibriums subject to these budget lines. 20 18 16 14 12 10 QUANTITY OF LATTES Y A N N BL BL, 2 6 8 10 12 14 16 18 20 QUANTITY OF SCONES Given the previous graph and knowing the price of a latte is $4, Eileen's budget is $
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