Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs $2000 a unit. Troy has $15000 to spend on both goods. i. Give the equation for Troy's budget line. If drones are on the vertical axis, what is the slope of the budget line? ii. Troy is a utility maximizer. Describe the utility maximization condition. Using the available information at what value is utility expected to be maximized. ii. "Drones are Troy's favorite electronic therefore the law of diminishing marginal does not apply". Do you agree with this statement?

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