Question 2

to spend on breakfast and must choose how many pancakes and glasses of orange juice to order. The price of PC) is $2.00 and the price of orange juice (PJ) is $1.00. The s from pancakes and orange 2. {20 points) Barbara has $12 pancakes ( table below shows utility Barbara receive juice. a. Complete the table above. b. What is Barbara's optimal combination of pancakes and orange juice. Explain your answer. c. Suppose the price of orange juice is raised to $13.05. What is Barbara's optimum combination of pancakes and orange juice now? d. Briey explain how we can use this utility maximization problem to nd Barbara's demand curve for orange juice