Megan has $33 to spend on two goods - sushi and coca-cola. Sushi costs $4 per roll and coca-cola cost $5 per bottle. Megan’s total benefit (TB) from consuming sushi and coca-cola is given in Table 1. 

Sushi TB from Sushi Coca-Cola TB from Coca-Cola 

1 40 1 20 

2 76 2 39 

3 108 3 57 

4 136 4 74 

5 162 5 90 

6 186 6 105 

7 202 7 119 

8 214 8 132 

9 222 9 144 

10 226 10 155 

Table 1: Total Benefits for Sushi and Coca-Cola consumption 

a) Graph Megan’s budget constraint over the two goods. Label the graph as appropriate. 

b) What is the opportunity cost of a sushi roll? What is the opportunity cost of a bottle of coca-cola? 

c) Given a budget of $33 and prices of $4 per roll for sushi, and $5 per bottle for coca-cola, and total benefit (TB) as in Table 1; what is Megan’s optimal consumption bundle? 

d) Suppose Megan’s budget increases to $62. Graph the new budget constraint. Given the new budget of $62 and prices of $4 per roll for sushi, and $5 per bottle for coca-cola, and total benefit (TB) as in Table 1; what is Megan’s new optimal consumption bundle? 

e) Considering your solution from part (d), is this consistent with sushi being a normal good, or an inferior good? Is it consistent with coca-cola being a normal good or an inferior good? 

f) Suppose Megan’s budget returns to $33, and the price of coc-cola falls to $3 per bottle. Graph the new budget constraint. Given the budget of $33 and prices of $4 per roll for sushi, and $3 per bottle for coca-cola, and total benefit (TB)  what is Megan’s new optimal consumption bundle? 

g) Considering your solution from part (f), is this consistent with sushi and cocacola being complements, or substitutes?