Illustrate the given pattern of consumption


Problem

Dave consumes only two goods, coffee and doughnuts. When the price of coffee falls, he buys the same amount of coffee and more doughnuts.

a) On an optimal choice diagram (with budget lines and indifference curves), illustrate this pattern of consumption.

b) Is this purchasing behavior consistent with a quasilinear utility function? Explain.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Illustrate the given pattern of consumption
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