[See Solution] Sheila consumes only cheese cakes and Apple cider. She has 15 slices of cheese cake and 10 pints of Apple cider before going to the market
Question: Sheila consumes only cheese cakes and Apple cider. She has 15 slices of cheese cake and 10 pints of Apple cider before going to the market place. At the marketplace one slice of cheese cake can be exchanged for 2 pints of Apple cider (all units are perfectly divisible, so 1 pint of Apple cider can be exchanged for \(\frac{1}{2}\) slice of cheese cake).
- Carefully draw Sheila's budget set.
- Suppose there is a "transaction tax" so that for each slice of cheese cake bought or sold, \(\frac{1}{4}\) slice of cheese cake is eaten by the town's Sheriff. Carefully draw the budget set.
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