Phineas likes tea and licorice

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Phineas likes tea and licorice. He bdrinks two ounces of tea for each ounce of licorice he eats. Tea costs PT per ounce, while licorice costs PL per ounce. If T denotes Phineas' consumption of tea and L denotes his consumption of licorice, write down Phineas' utility function. Let m denote Phineas' income he has to spend on tea and licorice. Find his demand for tea and for licorice. Sketch a few of Phineas' indifference curves in commodity space with L on the horizontal axis and T on the vertical axis. On your drawing, sketch and label the ?PL price-offer curve and the income offer (income expansion) curve. Sketch a qualitatively correct demand curve and a qualitatively correct Engel curve. Please show all work and label all axes

 

 

Reference no: EM13846874

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