Suppose Musashi has a weekly budget of $24 to spend on juice and yogurt. Juice is priced at $2 per gallon, and yogurt is priced at $6 per container. containers gallons of juice. If he spends his entire $24 on yogurt, he can buy If Musashi spends his entire $24 on juice, he can buy of yogurt. Use the blue line (circle symbol) to plot Musashi's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of juice and yogurt that are affordable for Musashi. Finally, place the black point (plus symbol) on the point on which Musashi spends $12 on each good. Musashi's budget constraint that corresponds to a scenario Note: Dashed drop lines will automatically extend to both axes. 24 22 BC, ($24) 20 18 16 Affordable Region 14 12 10 $12 on Each 8 A 6 BC, ($48) 2 4 6 8 10 12 14 16 18 20 22 24 JUICE (Gallons) YOGURT (Containers)

Suppose Musashi has a weekly budget of $24 to spend on juice and yogurt. Juice is priced at $2 per gallon, and yogurt is priced at $6 per container. containers gallons of juice. If he spends his entire $24 on yogurt, he can buy If Musashi spends his entire $24 on juice, he can buy of yogurt. Use the blue line (circle symbol) to plot Musashi's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of juice and yogurt that are affordable for Musashi. Finally, place the black point (plus symbol) on the point on which Musashi spends $12 on each good. Musashi's budget constraint that corresponds to a scenario Note: Dashed drop lines will automatically extend to both axes. 24 22 BC, ($24) 20 18 16 Affordable Region 14 12 10 $12 on Each 8 A 6 BC, ($48) 2 4 6 8 10 12 14 16 18 20 22 24 JUICE (Gallons) YOGURT (Containers)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...

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Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.