4. Suppose your preferences are reflected in the indifference map shown. A burger costs $100 and a slice of pizza sells for $50. You have a food budget of $500 per week. a) How many burgers and slices of pizza will you consume in a typical week? Explain your choice. b) Demonstrate the effect on your consumption choice if pizza falls in price.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 4SQP
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4. Suppose your preferences are reflected in the
indifference map shown. A burger costs $100 and a
slice of pizza sells for $50. You have a food budget of
$500 per week.
a) How many burgers and slices of pizza will you
consume in a typical week? Explain your choice.
Demonstrate the effect on your consumption
choice if pizza falls in price.
b)
18
16
14
12
10
8
6
4
2
Burgers
2
1
3
4
5
Transcribed Image Text:4. Suppose your preferences are reflected in the indifference map shown. A burger costs $100 and a slice of pizza sells for $50. You have a food budget of $500 per week. a) How many burgers and slices of pizza will you consume in a typical week? Explain your choice. Demonstrate the effect on your consumption choice if pizza falls in price. b) 18 16 14 12 10 8 6 4 2 Burgers 2 1 3 4 5
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