Andrea loves to eat burritos with hot sauce for lunch. In fact, she cannot enjoy a burrito (B) unless it has three servings of hot sauce (H). She gets no additional enjoyment from more than three servings of hot sauce per burrito.
(a) Write the function representing Andreas’ utility from burritos and hot sauce. Plot one indifference curve for U=10. Plot B on the vertical axis and H on the horizontal axis.
(b) Solve for Andreas’ optimal consumption basket per week if the price of a burrito is $7.50, the price of each serving of hot sauce is $0.50, and her total income is $63. Plot this result labeling as many points as you can.
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Andrea loves to eat burritos with hot sauce for lunch. In fact, she cannot enjoy a...