v) Illustrate your answer to (iii) on a graph, include your indifference curve, the budget constraint, the slope of the budget constraint, and all labels.
v) Illustrate your answer to (iii) on a graph, include your indifference curve, the budget constraint, the slope of the budget constraint, and all labels.
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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CAN YOU ANSWER PART 4 (iv) PLEASE???
Suppose you have preferences for pizza (z) and soda (d). The
pd = 2.00. You have an income of I = 20 that you can spend on pizza and soda every week.
Suppose you like to always consume 3 pieces of pizzas with 2 cups of soda.
•(i) What type of preference do you have for pizzas and sodas?
•(ii) Derive the utility function for pizza and sodas
•(iii) Solve for your optimal consumption of pizza and sodas
•(iv) Illustrate your answer to (iii) on a graph, include your indifference curve, the budget constraint,
the slope of the budget constraint, and all labels.
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