1. The gragh below shows indifference curves (IC₁ and IC₂) and budget constraints (BC1, BC2, BC3) for Sam who enjoys consuming tacos with soda. (6 points) a. Based on the Budget Constraint BC2, if Sam's budget is $28 then what would be the the prices of soda and/or taco? b. What combination of tacos and soda quantities optimizes Sam's utility? Tacos 5 4 3 2 1 O 1 (2,3) 2 3 (4,3) 4 BC3 5 6 7 IC1 IC2 BC2 8 9 BC1 10 Cans of Soda || 1. The gragh below shows indifference curves (IC₁ and IC₂) and budgetconstraints (BC₁, BC2, BC3) for Sam who enjoys consuming tacos with soda.(6 points)a. Based on the Budget Constraint BC2, if Sam's budget is $28 then whatwould be the the prices of soda and/or taco?b. What combination of tacos and soda quantities optimizes Sam's utility?Tacos5★321O(2,3)IN3(4,3)BC35 6IC1BC27 8IC2la9BC110Cans of Soda||

The budget line illustrates the various combinations of goods that a consumer can purchase within…

Answered: 1. The gragh below shows indifference…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. The gragh below shows indifference curves (IC₁ and IC₂) and budget constraints (BC1, BC2, BC3) for Sam who enjoys consuming tacos with soda. (6 points) a. Based on the Budget Constraint BC2, if Sam's budget is $28 then what would be the the prices of soda and/or taco? b. What combination of tacos and soda quantities optimizes Sam's utility? Tacos 5 4 3 2 1 O 1 (2,3) 2 3 (4,3) 4 BC3 5 6 7 IC1 IC2 BC2 8 9 BC1 10 Cans of Soda ||

1. The gragh below shows indifference curves (IC₁ and IC₂) and budget
constraints (BC₁, BC2, BC3) for Sam who enjoys consuming tacos with soda.
(6 points)
a. Based on the Budget Constraint BC2, if Sam's budget is $28 then what
would be the the prices of soda and/or taco?
b. What combination of tacos and soda quantities optimizes Sam's utility?
Tacos
5
★
3
2
1
O
(2,3)
IN
3
(4,3)
BC3
5 6
IC1
BC2
7 8
IC2
la
9
BC1
10
Cans of Soda
||

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