Use the accompanying graph to answer the questions. Ziva is deciding how many fireworks and toy rockets to buy with her $120. The price of fireworks is $12, and the price of rocket U4 U5 10 U3 ships is $15. The graph shows her indifference curves for these two goods. Place the budget constraint, BC, to show U2 8 Ziva's consumption possibilities, and place point A at Ziva's consumption point if she maximizes her utility. Curves U1 through U5 represent five of Ziva's indifference curves. Then, UI answer the three questions. 4. 3 Which is the highest level of utility that Ziva can achieve 2 with her budget? 1 U3 6. 7. 10 1 2 3. 4 U4 Quantity fireworks U1 Incorrect U2 U5 Quantity rockets
Use the accompanying graph to answer the questions. Ziva is deciding how many fireworks and toy rockets to buy with her $120. The price of fireworks is $12, and the price of rocket U4 U5 10 U3 ships is $15. The graph shows her indifference curves for these two goods. Place the budget constraint, BC, to show U2 8 Ziva's consumption possibilities, and place point A at Ziva's consumption point if she maximizes her utility. Curves U1 through U5 represent five of Ziva's indifference curves. Then, UI answer the three questions. 4. 3 Which is the highest level of utility that Ziva can achieve 2 with her budget? 1 U3 6. 7. 10 1 2 3. 4 U4 Quantity fireworks U1 Incorrect U2 U5 Quantity rockets
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.5P
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Question
Please see below. I just need help with the graph as the picture shows that's what I got wrong.
Transcribed Image Text:Feedback
U4
You have incorrectly placed the vertical
U3
intercept of BC.
Given her budget of $120, how many
rockets could she buy if she spent all of
the budget on $15 rockets?
Transcribed Image Text:Use the accompanying graph to answer the questions. Ziva is
deciding how many fireworks and toy rockets to buy with her
$120. The price of fireworks is $12, and the price of rocket
U4
U5
10
U3
ships is $15. The graph shows her indifference curves for
these two goods. Place the budget constraint, BC, to show
U2
Ziva's consumption possibilities, and place point A at Ziva's
consumption point if she maximizes her utility. Curves U1
through U5 represent five of Ziva's indifference curves. Then,
answer the three questions.
7
6.
U1
4
3
Which is the highest level of utility that Ziva can achieve
with her budget?
1
U3
BS
6.
7
8.
10
3.
4
U4
Quantity fireworks
U1
Incorrect
U2
U5
Quantity rockets
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