Question
Tatiana has an income of 9 to spend on smoothies (good 1) and lattes (good 2) from either a smoothie bar or a caf. Her
Tatiana has an income of 9 to spend on smoothies (good 1) and lattes (good 2) from either a smoothie bar or a caf. Her preferences are described by (1, 2 ) = 31 + 22. Prices are fixed at 1 = 2 = 3.
(a) How will Tatiana spend her income? [5 marks]
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Macroeconomics
Authors: David Colander
8th edition
978-0078004407, 78004403, 978-0077247171, 77247175, 978-0077307110
