How much additional income would louis need to afford

Reference no: EM13237132

Louis spends $6 / week on orange juice and pineapple juice. Orange juice costs $2 a cup while pineapple juice costs $1 a cup. Louis views 2 cup of orange juice as a perfect substitute for 3 cups of pineapple juice. Find Louis' optimal consumption bundle of orange juice and pineapple juice each week. Suppose the price of pineapple juice rises to $2 a cup while the price of orange juice remains constant. How much additional income would Louis need to afford his original consumption bundle? Draw Louis's demand curve and his Slutsky demand curve for pineapple juice.

Reference no: EM13237132

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