Final answer:
To find the optimal bundle with the changing price of coffee, compare the ratios of marginal utility to price for coffee and tea along the budget constraint. Set up an equation and solve for the quantity of coffee and tea that maximizes utility.
Step-by-step explanation:
When the price of coffee changes from $6 to $2 while the price of tea remains at $4 and the budget remains at $24, we can find the optimal bundle by comparing the ratios of marginal utility to price for coffee and tea. Along the budget constraint, the ratio of marginal utility to price for coffee (22:6) and for tea (11:4) at the optimal choice should remain the same. Therefore, by setting up an equation:
22/6 = 11/4
We can solve for the quantity of coffee and tea that will maximize the utility and find the optimal bundle