A consumer is choosing between magazines and books. Several indifference curves are shown on the diagram to the right. 50 Consumer income allocated for these two goods is equal to $500. The price of books (P,) is equal to $10.00. 45- 40- 1.) Use the line drawing tool to draw four appropriate budget lines to represent a consumer optimum at different prices for magazines (P,) for all indifference curves 35 shown. Properly label the lines. 30- 2.) Use the line drawing tool to draw the price consumption curve for magazines. Properly label this line. 25- 20- Carefully follow the instructions above, and only draw the required o bjects. 15 10- 5- 0 10 20 30 40 50 60 70 80 90 100 110 120 Books Magazines
A consumer is choosing between magazines and books. Several indifference curves are shown on the diagram to the right. 50 Consumer income allocated for these two goods is equal to $500. The price of books (P,) is equal to $10.00. 45- 40- 1.) Use the line drawing tool to draw four appropriate budget lines to represent a consumer optimum at different prices for magazines (P,) for all indifference curves 35 shown. Properly label the lines. 30- 2.) Use the line drawing tool to draw the price consumption curve for magazines. Properly label this line. 25- 20- Carefully follow the instructions above, and only draw the required o bjects. 15 10- 5- 0 10 20 30 40 50 60 70 80 90 100 110 120 Books Magazines
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.4P
Related questions
Question
Transcribed Image Text:A consumer is choosing between magazines and books. Several indifference
curves are shown on the diagram to the right.
50-
Consumer income allocated for these two goods is equal to $500. The price of
books (P,) is equal to $10.00.
45-
40-
1.) Use the line drawing tool to draw four appropriate budget lines to represent a
consumer optimum at different prices for magazines (P,) for all indifference curves
35
shown. Properly label the lines.
30-
2.) Use the line drawing tool to draw the price consumption curve for magazines.
Properly label this line.
25-
Carefully follow the instructions above, and only draw the required objects.
15-
10-
10 20 30 40 50 60 70 80 90 100 11o 120
Books
tv
21
MacBook Air
80
DII
DD
F2
F3
F4
F5
F6
F7
FB
F9
F10
11
FI
@
23
&
*
1
3
6.
7
8.
Q
W
E
T
Y
U
A
S
F
H
J
K
Z
C
B
option
command
command
opti
>
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc