Question: carries utility function is u 3x y where...
Carrie’s utility function is U = 3x + y, where x is cocoa and y is tea.
(a) Are cocoa and tea substitutes or complements for Carrie? How many mugs of cocoa are equivalent to a mug of tea in terms of her utility level?
(b) If the price of cocoa is $8, the price of tea is $3 and her income is $24, how many units of cocoa and tea will she consume?
(c) What is another utility function that would also represent Carrie’s preferences?