Question

Budget Constraints and Indifference Curves

(M&B ch3 #16) Boris budgets $9/week for his morning coffee with milk.He likes it only if it is
prepared with exactly 4 parts coffee, 1 part milk.Coffee costs $1/oz, milk $0.50/oz.How much
coffee and how much milk will Boris buy per week?How will your answers change if the price of
coffee rises to $3.25/oz (fractions of ounces per week are possible)?Show your answers
graphically.

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