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Homework answers / question archive / Ms Caffeine likes to enjoy coffee (C) and tea (T) according to this utility function: U (C
Ms Caffeine likes to enjoy coffee (C) and tea (T) according to this utility function:
U (C.T) = 3C+4T.
(1) If cups of coffee and tea sell for $3 each and she has $12 to spend, how many cups of each should she buy to maximize her utility?
(2) Would things change if the price of coffee fell to $2 per cup?
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