mary has a weekly allowance of 24 to spend on, Financial Econometrics

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mary has a weekly allowance of 24 to spend on

Mary has a weekly allowance of $24 to spend on soda and coffee. Let 40 cups be the maximum amount of soda she can buy for the money. Let $.40 be the price of 1 cup of coffee. Assume that regardless of prices Mary always prefers to consume coffee and soda in one-for-one combinations, i.e. a cup of soda with each cup of coffee. Draw Mary's budget line and her indifference curves. Determine her best choice.

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Financial Econometrics: mary has a weekly allowance of 24 to spend on

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