workca wr your groop. 4. Draw a budget line for Lynne, who has a weekly income of 225. Assumte that she buys food and clothing, and that food costs $15 per bag while clothes cost $25 per item (plot food on the horizontal axis and clothing in the vertical axis). Add an indifference curve for Lynne that is tangent to her budget line at the combination of 3 items of clothing and 10 bags of food. Use your graph to illustrate the following changes: a. The price per bag of food increases to $22.5. b. Her income increases to $450 (assume prices are as before, i.e., food costs $15 per bag while clothes cost $25 per item)
workca wr your groop. 4. Draw a budget line for Lynne, who has a weekly income of 225. Assumte that she buys food and clothing, and that food costs $15 per bag while clothes cost $25 per item (plot food on the horizontal axis and clothing in the vertical axis). Add an indifference curve for Lynne that is tangent to her budget line at the combination of 3 items of clothing and 10 bags of food. Use your graph to illustrate the following changes: a. The price per bag of food increases to $22.5. b. Her income increases to $450 (assume prices are as before, i.e., food costs $15 per bag while clothes cost $25 per item)
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQP
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