Suppose Ben has a month-to-month earnings of $eight,000 which he allocates between two items rock cake and sodas. The worth of a soda is $100 and the worth of a rock cake is $150
I. Graph Ben’s price range line with soda on the horizontal axis .
II. What’s the slope of the price range line?
III. If the marginal utility for the final unit of soda is 500 items and that of rock cake is 400 items. What ought to Ben do to maximise his utility