Suppose that tea and sugar are perfect complements and that a consumer will only

consume 1 cup of tea with 2 cubes of sugar. The price of tea is $2/cup. (A fraction of an

unsweetened cup of tea would cost that same fraction of $2). The price sugar is $0.25 per

cube. A consumer has set aside $25 to spend on sweetened tea each week. Graphically

depict and identify the set of feasible consumption, the budget line and its horizontal and

vertical intercepts, and 2 indifference curves, including the utility-maximizing

indifference curve. Indicate graphically and numerically the optimal combination of tea

and sugar.