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Quantity off, Total Quantity off Total Pita Wraps| Utility Iced Tea Utility 1 60 7 128 7 115 The current budget is $30, the Price
Quantity off, Total Quantity off Total Pita Wraps| Utility Iced Tea Utility 1 60 7 128 7 115 The current budget is $30, the Price of Pitas is $6 and the Price of Iced Tea is $3. A. Calculate the MU and MU/P B. What is the optimum combination of Pitas and Teas? Show your answer using both the Total Utility and Marginal Utility methods. C. If the price of Tea goes to $6 calculate the new optimum combination. D. Draw the Demand curve for tea. E. Draw the two budget constraints and indicate the optimum bundles on each curve. F. Indicate what the state of TU and MU/P are at the optimum combinations
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