Phineas likes tea and licorice

Reference no: EM13846874

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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