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A. Using the following information and the GRAPH VII (following page): 1) Graph the Budget Constraint line that corresponds to a Total income of $3,200; with the price of Good Y = $20.00/unit and the price of Good X = $9.41. (Label this Budget Constraint as BC1). 2) What is the highest level of utility achievable from this Budget Constraint? (i.e. TU = 3) For the Budget Constraint Bc1, identify/quantify and label the "utility-maximizing" consumption amounts of Good X and Good Y.

A. Using the following information and the GRAPH VII (following page): 1) Graph the Budget Constraint line that corresponds to a Total income of $3,200; with the price of Good Y = $20.00/unit and the price of Good X = $9.41. (Label this Budget Constraint as BC1). 2) What is the highest level of utility achievable from this Budget Constraint? (i.e. TU = 3) For the Budget Constraint Bc1, identify/quantify and label the "utility-maximizing" consumption amounts of Good X and Good Y.

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter13: Conic Sections
Section13.5: Systems Involving Nonlinear Equations
Problem 41PS
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GRAPH III. A. Using the following information and the GRAPH VII (following page): 1) Graph the Budget Constraint line that corresponds to a Total income of $3,200; with the price of Good Y = $20.00/unit and the price of Good X = $9.41. (Label this Budget Constraint as BC1). %3! 2) What is the highest level of utility achievable from this Budget Constraint? (i.e. TU = 3) For the Budget Constraint BC1, identify/quantify and label the "utility-maximizing" consumption amounts of Good X and Good Y. B. Using the following information and the GRAPH VII: 1) Graph a new Budget Constraint that represents a Total Income of $4,000; where the price of Good Y decreases to $14.28/unit; and the price of Good X decreases to $8.69/unit. (Label this Budget Constraint as BC2). 2) What is the highest level of utility achievable from this new Budget Constraint? (i.e. TU =) %3D 3) For the Budget Constraint BC2, identify/quantify and label the new "utility-maximizing" consumption amounts of Good X and Good Y.
Transcribed Image Text:GRAPH III. A. Using the following information and the GRAPH VII (following page): 1) Graph the Budget Constraint line that corresponds to a Total income of $3,200; with the price of Good Y = $20.00/unit and the price of Good X = $9.41. (Label this Budget Constraint as BC1). %3! 2) What is the highest level of utility achievable from this Budget Constraint? (i.e. TU = 3) For the Budget Constraint BC1, identify/quantify and label the "utility-maximizing" consumption amounts of Good X and Good Y. B. Using the following information and the GRAPH VII: 1) Graph a new Budget Constraint that represents a Total Income of $4,000; where the price of Good Y decreases to $14.28/unit; and the price of Good X decreases to $8.69/unit. (Label this Budget Constraint as BC2). 2) What is the highest level of utility achievable from this new Budget Constraint? (i.e. TU =) %3D 3) For the Budget Constraint BC2, identify/quantify and label the new "utility-maximizing" consumption amounts of Good X and Good Y.
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