Problem 3 Teddy thinks 1 pancake and 2 spoons of syrup are perfect complements. Let pancake be commodity 1 and syrup be commodity 2. The price of pancake is $1 per unit and the price of syrup is $0.50 per unit. Teddy has $10 to spend on a breakfast of pancake and syrup. Task 1: Find the optimal bundle for Teddy. Task 2: Illustrate the optimal bundle in the commodity space. (Include the budget line and the indifference curve going through the optimal bundle.) Task 3: Suppose Mary has the same preference as Teddy and faces the same prices, but is richer with $25 to spend. What is the aggregate demand for pancake in a world of only Mary and Teddy?

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