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Sara consumes shoes (D) and Crocs (C). Her marginal utility from consuming casual Crocs is MUC=20DC and her marginal utility from consuming dress shoes is

Sara consumes shoes (D) and Crocs (C). Her marginal utility from consuming casual Crocs is

MUC=20DC

and her marginal utility from consuming dress shoes is

MUD=10C2.

Her annual shoe allowance is

$360,

which she spends on only dress shoes and Crocs. If she pays

$40

for a pair of dress shoes and

$40

for a pair of Crocs, what is her optimal consumption bundle?

Sara's satisfaction-maximizing bundle contains how many

pairs of Crocs and

how many

pairs of dress shoes.

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