Thandi has R700 to spend on hamburgers and transport. A hamburger costs R35 while a car trip is R25. Use this information to derive and draw Thandi's budget line. On your graph (diagram) you must include an indifference curve showing where Thandi would be maximising satisfaction (consumer equilibrium). Put hamburgers on the vertical (y) axis.
Thandi has R700 to spend on hamburgers and transport. A hamburger costs R35 while a car trip is R25. Use this information to derive and draw Thandi's budget line. On your graph (diagram) you must include an indifference curve showing where Thandi would be maximising satisfaction (consumer equilibrium). Put hamburgers on the vertical (y) axis.
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 2SCQ: Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to...
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