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ECON391 Equilibriumin Market Economies

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Tom decides to be a collector of Ancient Greek (g)and Ancient Roman(r)coins.He wants to have matched sets of three Greek coins and one roman coin,and he doesn'want to have any Greek coins or Roman coins that are not in a matched set of this size.(a)(1point)Draw Tom's in dierence curves and write his utility function.Put Greek coins on they axis and Roman coins on the x axis.Assume he receives utility of 3 utils from each matched coin set he has.(b)Currently,Tom has 32 dollars to spend.The price of Roman coin is pr= 2 and the price of Greekcoinispg= 2.What is the optimal allocation
of Greek and Roman coins for Tom? How much utility does he achieve from this allocation?

ECON391 Equilibriumin Market Economies

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Julia likes to have waffles and orange juice for breakfast. Waffles cost $3.00 each and a glass of orange juice is $2.50. Shehas $15.00 to spend on breakfast. A. Draw a graph showing Julia’s budget set/constraint (i.e. her consumption set and frontier). Put the number ofwaffles on the vertic ...

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