Dmitri is in a band and likes to advertise upcoming shows using flyers he posts around the city. Making one black-and-white flyer costs $0.02, and making a flyer in color costs $0.10. Dmitri budgets $20.00 for making flyers each month. The following graph shows three of Dmitri's indifference curves for the number of black-and-white and color flyers that he makes. Use the green line (triangle symbol) to plot Dmitri's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Dmitri's optimal consumption choice given that budget constraint. 1000 900 Budget Constraint 800 700 600 Optimum 500 400 + 300 + 200 + 100 0.2 flyers 1 flyer 25 50 75 100 125 150 175 200 225 250 COLOR FLYERS 5 flyers 17.5 flyers At the optimum that you indicated on the graph, Dmitri's marginal rate of substitution is equal to in black and white per flyer in color. BLACK-AND-WHITE FLYERS
Dmitri is in a band and likes to advertise upcoming shows using flyers he posts around the city. Making one black-and-white flyer costs $0.02, and making a flyer in color costs $0.10. Dmitri budgets $20.00 for making flyers each month. The following graph shows three of Dmitri's indifference curves for the number of black-and-white and color flyers that he makes. Use the green line (triangle symbol) to plot Dmitri's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Dmitri's optimal consumption choice given that budget constraint. 1000 900 Budget Constraint 800 700 600 Optimum 500 400 + 300 + 200 + 100 0.2 flyers 1 flyer 25 50 75 100 125 150 175 200 225 250 COLOR FLYERS 5 flyers 17.5 flyers At the optimum that you indicated on the graph, Dmitri's marginal rate of substitution is equal to in black and white per flyer in color. BLACK-AND-WHITE FLYERS
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 3SQP
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Transcribed Image Text:Dmitri is in a band and likes to advertise upcoming shows using flyers he posts around the city. Making one black-and-white flyer costs $0.02, and
making a flyer in color costs $0.10. Dmitri budgets $20.00 for making flyers each month.
The following graph shows three of Dmitri's indifference curves for the number of black-and-white and color flyers that he makes.
Use the green line (triangle symbol) to plot Dmitri's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Dmitri's
optimal consumption choice given that budget constraint.
1000
900
Budget Constraint
800
700
600
Optimum
500
400
300
200 +
100
0.2 flyers
1 flyer
25
50
75
100
125
150
175
200
225
250
COLOR FLYERS
5 flyers
17.5 flyers
At the optimum that you indicated on the graph, Dmitri's marginal rate of substitution is equal to
in black and white per flyer in color.
BLACK-AND-WHITE FLYERS
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