Suppose that Maggie cares only about chai and bagels. Her utility function is U = BC, where B is the number of bagels she eats in a day and C is the number of cups of chai she drinks in a day. The price of chai is $3, and the price of bagels is $1.50. Maggie has $6 to spend per day on chai and bagels.

a.What is Maggie's objective function?

b.What is Maggie's constraint?

c.HOW TO make a statement of Maggie's constrained optimization problem.

d.Solve Maggie's constrained optimization problem using a Lagrangian.

e.Plot the indifference curve and the budget constraint using the optimal bundles where B is on the horizontal axis.