12:39XTo edit and save, sign in with asubscription.Sign in1. Plot the following combinations of Good X and Good Y in a single graph and constructthe consumption possibilities line:CombinationsABсDEFGHGood X21181512Combination 1Combination 29630A. What is the rate of exchange between Good X and Good Y?B. Supposing your original choice is combination D but you changed your mind. Showin the above graph an example of an opportunity cost where you give up combinationD in favor of a new combination.CombinationCombination2. Supposing the extreme combinations of Good X and Good Y which can be consumed ona given budget are given as follows:Good X200Good Y01234567694Good Y050Construct a graph showing the consumption possibilities line. Explain the relationshipdepicted by this line.Good B0503. Supposing the extreme combinations which can be produced of Good A and Good B witha given resources are given as follows:Good A2000Construct a graph showing the production possibilities curve. Explain the relationshipdepicted by the curve.4. Give the differences between graph number 2 and graph number 3, and explain.

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1. Plot the following combinations of Good X and Good Y in a single graph and construct the consumption possibilities line: Combinations A B C D E F G H Good X 21 18 15 12 9 6 3 0 Good Y 0 1 2 3 4 5 6 7 A. What is the rate of exchange between Good X and Good Y? B. Supposing your original choice is combination D but you changed your mind. Show in the above graph an example of an opportunity cost where you give up combination D in favor of a new combination.

1. Plot the following combinations of Good X and Good Y in a single graph and construct the consumption possibilities line: Combinations A B C D E F G H Good X 21 18 15 12 9 6 3 0 Good Y 0 1 2 3 4 5 6 7 A. What is the rate of exchange between Good X and Good Y? B. Supposing your original choice is combination D but you changed your mind. Show in the above graph an example of an opportunity cost where you give up combination D in favor of a new combination.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.2P

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1. Plot the following combinations of Good X and Good Y in a single graph and construct
the consumption possibilities line:
Combinations
A
B
с
D
E
F
G
H
Good X
21
18
15
12
Combination 1
Combination 2
9
6
3
0
A. What is the rate of exchange between Good X and Good Y?
B. Supposing your original choice is combination D but you changed your mind. Show
in the above graph an example of an opportunity cost where you give up combination
D in favor of a new combination.
Combination
Combination
2. Supposing the extreme combinations of Good X and Good Y which can be consumed on
a given budget are given as follows:
Good X
20
0
Good Y
0
1
2
3
4
5
6
7
694
Good Y
0
50
Construct a graph showing the consumption possibilities line. Explain the relationship
depicted by this line.
Good B
0
50
3. Supposing the extreme combinations which can be produced of Good A and Good B with
a given resources are given as follows:
Good A
200
0
Construct a graph showing the production possibilities curve. Explain the relationship
depicted by the curve.
4. Give the differences between graph number 2 and graph number 3, and explain.

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