Suppose that you have an income of $20 to spend on sticky hands and gumballs. Both cost $1.00. Solve for the budget constraint, using gumballs as your x variable. Graph the budget constraint. Draw an indifference curve such that the optimal consumption bundle is 10 gumballs and 10 sticky hands.

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 1SQP
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Suppose that you have an income of $20 to spend on sticky hands and gumballs. Both cost $1.00.

Solve for the budget constraint, using gumballs as your x variable. Graph the budget constraint. Draw an indifference curve such that the optimal consumption bundle is 10 gumballs and 10 sticky hands. 

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