1. The gragh below shows indifference curves (IC, and IC₂) and budget constraints (BC₁, BC2, BC3) for Sam who enjoys consuming tacos with soda. (6 points) a. Based on the Budget Constraint BC2, if Sam's budget is $28 then what would be the the prices of soda and/or taco? b. What combination of tacos and soda quantities optimizes Sam's utility? Tacos 5 ليا 2 1 O (2,3) N 3 (4,3) BC3 5 9 7 IC1 BC2 IC2 9 BC1 10 Cans of Soda
1. The gragh below shows indifference curves (IC, and IC₂) and budget constraints (BC₁, BC2, BC3) for Sam who enjoys consuming tacos with soda. (6 points) a. Based on the Budget Constraint BC2, if Sam's budget is $28 then what would be the the prices of soda and/or taco? b. What combination of tacos and soda quantities optimizes Sam's utility? Tacos 5 ليا 2 1 O (2,3) N 3 (4,3) BC3 5 9 7 IC1 BC2 IC2 9 BC1 10 Cans of Soda
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 2CQQ
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1. The gragh below shows indifference curves (IC₁ and IC₂) and budget constraints (BC1, BC2, BC3) for Sam who enjoys consuming tacos with soda. (6 points) a. Based on the Budget Constraint BC2, if Sam's budget is $28 then what would be the the prices of soda and/or taco? b. What combination of tacos and soda quantities optimizes Sam's utility? Tacos 5 4 3 2 1 O 1 (2,3) 2 3 (4,3) 4 BC3 5 6 7 IC1 IC2 BC2 8 9 BC1 10 Cans of Soda ||
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