2. Jane works for 6 hours per day as a part time barista at Starbucks. She earns $15 per hour for her part time job. Suppose she wants to eat an imported instant Shin ramyun noodles that cost $2.25 (good Y) and Banana milk at $3.10 per bottle (good X). a. Take note of the good x and good y. Draw Jane's budget constraint. solving. graph b. Solve for the marginal rate of substitution. Now, tax on imported goods rise. In effect, the price of the Shin ramyun increased from $2.25 per cup to $6. The banana milk's price, however, remains constant. Despite the inflation, Jane's income still remains the same. c. Draw a graph that illustrate Jane's new consumption of these goods. Choose 3 possible bundle of goods for her using indifference curves. NOTE: Put proper label on the different parts of the graph. You may use ABC as the label of your points..

2. Jane works for 6 hours per day as a part time barista at Starbucks. She earns $15 per hour for her part time job. Suppose she wants to eat an imported instant Shin ramyun noodles that cost $2.25 (good Y) and Banana milk at $3.10 per bottle (good X). a. Take note of the good x and good y. Draw Jane's budget constraint. solving. graph b. Solve for the marginal rate of substitution. Now, tax on imported goods rise. In effect, the price of the Shin ramyun increased from $2.25 per cup to $6. The banana milk's price, however, remains constant. Despite the inflation, Jane's income still remains the same. c. Draw a graph that illustrate Jane's new consumption of these goods. Choose 3 possible bundle of goods for her using indifference curves. NOTE: Put proper label on the different parts of the graph. You may use ABC as the label of your points..

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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