Limited access

Upgrade to access all content for this subject

Sandra gains utility from coffee mugs and books. Her utility function is:

$$U = M+\sqrt{B}$$

Where $M$ is the number of mugs she consumes and $B$ is the number of books she consumes.

On her last visit to the coffee mug store, a small child with a BB gun accidentally shot and destroyed a mug as she was holding it! To compensate her for her shock, the mug store gives her a permanent $50$% discount on mugs.

The original price of mugs was $8$ and the original price of books was $4$, and she has $28$ to spend.

Select an assignment template