Problem on income probability

Kramer spends all of his income $270 on two products, soup (S) and on golf balls (G). He always bought 2 golf balls for every 1 cup of soup he consumes. He acquires no additional utility from the other cup of soup unless he as well gets 2 more golf balls and he gets no additional utility from the other golf ball unless he as well gets another 1/2 cup of soup.

a. To Kramer, soup and golf balls are (circle 1):

Perfect Substitutes Perfect Complements Neither

b. Assume the price of soup is $5 per cup and the price of golf balls is $2 per ball. Clearly indicate Kramer’s utility maximizing bundle of soup and golf balls on the graph. Determine How many cups of soup and how many number of golf balls does he consume?

Quantity of soup = _________ Quantity of golf balls = __________

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