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A consumer is choosing between magazines and curves and budget constraint are shown on the graph to the right. 50- The utility-maximizing point is Point-B 45- 40- Suppose that the price of books falls. 35- 1.) Use the line drawing tool to draw a new budget constraint (still tangent to one of the indifference curves). Label this line 'L2 30- 2.) Use the point drawing tool to locate the new utility-maximizing point. Label this point 'T 25- 20- Carefully follow the instructions above, and only draw the required objects. 15- 10- 5- 22.5 0- 10 15 20 25 30 35 40 45 50 Books Magazines

A consumer is choosing between magazines and curves and budget constraint are shown on the graph to the right. 50- The utility-maximizing point is Point-B 45- 40- Suppose that the price of books falls. 35- 1.) Use the line drawing tool to draw a new budget constraint (still tangent to one of the indifference curves). Label this line 'L2 30- 2.) Use the point drawing tool to locate the new utility-maximizing point. Label this point 'T 25- 20- Carefully follow the instructions above, and only draw the required objects. 15- 10- 5- 22.5 0- 10 15 20 25 30 35 40 45 50 Books Magazines

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.12P
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A consumer is choosing between magazines and books. His indifference curves and budget constraint are shown on the graph to the right. 50- 45- The utility-maximizing point is Point-B 40 Suppose that the price of books falls. 35 .... 1.) Use the line drawing tool to draw a new budget constraint (still tangent to 30- one of the indifference curves). Label this line 'L2 25- 2.) Use the point drawing tool to locate the new utility-maximizing point. Label this point 'T 20- Carefully follow the instructions above, and only draw the required objects. 15- 10- 5- 22.5 0- 35 20 25 Books 15 40 45 50 étv 15 MacBook Air 80 DII esc F2 F3 F5 F6 F7 F8 F1 ! @ $ 1 4 6. 7 8 9 Q W E IT Y tab A F つ K caps lock Z C V shift fn control option command つ Magazines N リ
Transcribed Image Text:A consumer is choosing between magazines and books. His indifference curves and budget constraint are shown on the graph to the right. 50- 45- The utility-maximizing point is Point-B 40 Suppose that the price of books falls. 35 .... 1.) Use the line drawing tool to draw a new budget constraint (still tangent to 30- one of the indifference curves). Label this line 'L2 25- 2.) Use the point drawing tool to locate the new utility-maximizing point. Label this point 'T 20- Carefully follow the instructions above, and only draw the required objects. 15- 10- 5- 22.5 0- 35 20 25 Books 15 40 45 50 étv 15 MacBook Air 80 DII esc F2 F3 F5 F6 F7 F8 F1 ! @ $ 1 4 6. 7 8 9 Q W E IT Y tab A F つ K caps lock Z C V shift fn control option command つ Magazines N リ
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