Betsy lives in a dorm that offers coffee and licorice for sale at a kiosk. Coffee is priced at $1.00 per cup, while licorice is priced at $0.50 each. a. imagine Betsy's utility function is U-3CL where is the number of cups of coffee and Lis the number of pieces of licorice. What is her marginal rate of substitution of coffee for licorice (MRS with licorice on the X-axis)? What is her optimal ratio of coffee to licorice? b. If she has $10 per week to spend on coffee and licorice, how many of each should she purchase per week? c. Now imagine Betsy's utility function is U=3C + L. Given the initial prices, what is her optimal mix of coffee and licorice with a $10.00 budget?
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