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s) Consumer Choice Theory: Ty likes lemons and tea. The price of for a pound of lemons is $2 and the price for a box
s) Consumer Choice Theory: Ty likes lemons and tea. The price of for a pound of lemons is $2 and the price for a box of tea is $4. Ty has a budget equal to $510 for lemons and teas. His utility function is U = 105L - 0.5L2 + 120T - 0.5T2 + LT. a) (1pt) What is the relationship between lemons and tea for Ty? How can you tell from the utility function? b) (4pts) Use Lagrangian multipliers (calculus) to Ty's optimal consumption of lemons and tea given his budget constraint. c) (2pts) Illustrate your answer on a graph with indifference curves, labeling your grap
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