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Suppose that Kam's MRS for guac (q1) and burgers (q2) is MRS= q1/q2 . She has $100 to spend and q1 = 5 and q2
Suppose that Kam's MRS for guac (q1) and burgers (q2) is MRS= q1/q2 . She has $100 to spend and q1 = 5 and q2 = 20.
a. What is the demand function for guac? b. What is the demand function for burgers? c. Graphically show the effect of an increase in income on the demand for guac. d. What is the optimal amount of guac and burgers?
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