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Question 1 (60 Points): Tianyu's Breakfast Tianvu has a $10 budget for his breakfast at his favorite coffee shop. The menu has two items: coffee
Question 1 (60 Points): Tianyu's Breakfast Tianvu has a $10 budget for his breakfast at his favorite coffee shop. The menu has two items: coffee is $5 per cup and croissants are 52.5 per each. The coffee shop has a special promotion for coffee: if you purchase two cups of coffee, you will get the third cup for free [buyMogetonefree). Tianvu's preference over coffee [good x) and croissants [good 3)) can be represented by a utility function 1 140ml)=lnx+lrryililhereMUJlf =iandl'lf)r = y A. (1 5 points) Sketch and label Tianyu's budget set in a graph. Clearly label your axes, intercepts, and curves. Interpret the budget set using nonntechnical terms
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