Table: Take-out and Coffee
Refer to the table. The table shows the marginal utility a consumer receives from purchasing take-out food and lattés each week. The price of a take-out meal is $15, and the price of a latté is $5. What is the utility-maximizing bundle of take-out and lattés for a consumer who has a weekly income of $45 (all of which will be spent on take-out and lattés)? What will be the bundle if income increases to $75?
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