### How does the equilibrium condition differ from the condition

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For Livia, coffee and tea are perfect substitutes: One cup of coffee is equivalent toone cup of tea. Suppose Livia has \$90 per month to spend on these beverages, and coffeecosts \$0.90 per cup while tea costs \$1.20 per cup. Find Livia's best affordable bundle of tea and coffee. How does the equilibrium condition differ from the condition we derived in lecture for the "typical" case? How much could the price of a cup of coffee risewithout harming her standard of living?

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