The elementary school has one candy machine in the cafeteria.   Candy at the vending machine costs $1.50.   The machine requires exact change for each purchase: one dollar bill and two quarters. What is the utility function for dollar bills and quarters, with x representing the number of dollar bills and y representing the number of quarters?    Draw three indifference curves for dollar bills and quarters, for a typical customer at the vending machine.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.11P
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  1. The elementary school has one candy machine in the cafeteria.   Candy at the vending machine costs $1.50.   The machine requires exact change for each purchase: one dollar bill and two quarters.
  1. What is the utility function for dollar bills and quarters, with x representing the number of dollar bills and y representing the number of quarters?   
  2. Draw three indifference curves for dollar bills and quarters, for a typical customer at the vending machine.     
  3.  
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