How do you interpret the slope of the budge line

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Reference no: EM131253096

Mark has a preference over Tofu and Ribs described by, U=3R+T, where R is slabs of ribs and T is pounds of Tofu.

A. Graph the indifference curve associated with U=30.

B. The price of ribs, Pr=$4/slab, and the price of tofu, Pt=$1/pound. Mark has $60 in income. On a new graph, show Mark's budget constraint. How do you interpret the slope of the budge line?

C. On the graph from part B, show Mark's utility maximizing consumption choice. What utility level does Mark achieve with this choice?

Reference no: EM131253096

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