Suppose that Olivia has $29 per week to spend on snacks—Oreo cookies and KitKat chocolate bars. A box of Oreo cookies costs $3.5. A KitKat chocolate bar costs $3.0. Total Utility Table for Oreo cookies and KitKat chocolate bars as below. Count Oreo Cookies KitKat Chocolate Bars 1 59 43 2 106 75 3 135 98 4 149 117 5 162 129 6 164 139 7 164 147 Question 1 Graph the Budget Constraint with Oreo cookies on the horizontal axis and KitKat chocolate bars on the vertical axis. Demonstrate the Budget Constraint as an equation. Insert your answer here. Question 2 Calculate Olivia’s Marginal utils for Oreo cookie consumption and KitKat chocolate bar consumption. Insert your answer here. Question 3 Calculate Olivia’s Marginal utils per $ for Oreo cookie consumption and KitKat chocolate bar consumption. Insert your answer here. Question 4 Use the utility maximizing rule to identify the consumer equilibrium. What combination of Oreo cookies and KitKat chocolate bars will maximize Olivia’s total utility? Insert your answer here.
Suppose that Olivia has $29 per week to spend on snacks—Oreo cookies and KitKat chocolate bars. A box of Oreo cookies costs $3.5. A KitKat chocolate bar costs $3.0. Total Utility Table for Oreo cookies and KitKat chocolate bars as below. Count Oreo Cookies KitKat Chocolate Bars 1 59 43 2 106 75 3 135 98 4 149 117 5 162 129 6 164 139 7 164 147 Question 1 Graph the Budget Constraint with Oreo cookies on the horizontal axis and KitKat chocolate bars on the vertical axis. Demonstrate the Budget Constraint as an equation. Insert your answer here. Question 2 Calculate Olivia’s
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