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Sally likes Coffee (good 1) and biscuit (good 2). Her preferences are represented by the utility function U(q,q) = (q)1/3+(q)1/3, where q is the number
Sally likes Coffee (good 1) and biscuit (good 2). Her preferences are represented by the utility function U(q,q) = (q)1/3+(q)1/3, where q is the number of cups of tea and q is the number of cookies. Sally is given I = $108 that she is allowed to spend as she wishes on coffee and biscuit. Calculate Sally's optimal bundle if the price of coffee is p=$4 and the price of biscuit is p=$1. Call this bundle A and show it on a diagram (put coffee on the horizontal axis).
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