Question

suppose what the consumer always consumes 2 spoons of sugar with each cup of coffee.if the price of sugar is p1 per spoonful and the price of coffee is y2 per cup and the consumer has m dollars to spend on coffee and sugar,how much he or she want to purchase?

Answer 1

Answer:

The consumer will purchase\frac{m}{2 p 1+p 2}

2p1+p2

m

quantity based on the budget.

Explanation:

Given the price of a spoonful of sugar is p1;

The price a cup of coffee is p2;

The amount of money the consumer has is m dollars.

Let us assume that the consumer consumes x cups of coffee.

Therefore, he would buy x coffee and 2x spoons of sugar.

On satisfying the budget constraint, we can conclude that

2 p 1 x+p 2 x \leq m2p1x+p2x≤m

Ignoring the inequality,

2 p 1 x+p 2 x=m2p1x+p2x=m \therefore x=\frac{m}{2 p 1+p 2 x}∴x=

2p1+p2x

m

Hence, the consumer purchases \frac{m}{2 p 1+p 2}

2p1+p2

m

of sugar and coffee.