Assume that the data in the following table are an indifference curve for a consumer: a. graph this indifference curve and label "Quantity of Y" on the vertical axis and Quantity of X" on the horizontal axis. Label the points A-D. b. Assume the consumer's budget is $12 and the price of X and Y are $1.00 and $1.50, respectively. Draw the budget line in the above graph. c. what combination of X and Y will the consumer purchase?
Assume that the data in the following table are an indifference curve for a consumer: a. graph this indifference curve and label "Quantity of Y" on the vertical axis and Quantity of X" on the horizontal axis. Label the points A-D. b. Assume the consumer's budget is $12 and the price of X and Y are $1.00 and $1.50, respectively. Draw the budget line in the above graph. c. what combination of X and Y will the consumer purchase?
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 3SQP
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Assume that the data in the following table are an indifference curve for a consumer:
a. graph this indifference curve and label "Quantity of Y" on the vertical axis and Quantity of X" on the horizontal axis. Label the points A-D.
b. Assume the consumer's budget is $12 and the price of X and Y are $1.00 and $1.50, respectively. Draw the budget line in the above graph.
c. what combination of X and Y will the consumer purchase?
d. What is the value of the MRS and the slope (Px/Py) at consumer equilibrium?
e. Beginning with the graph drawn in part (a), explain and draw graphs to derive demand curve for X
| Choice | units y | units of x |
| A | 10 | 2 |
| B | 6 | 4 |
| C | 4 | 6 |
| D | 2 | 12 |
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