4. Indifference Curve and Budget Line Annie has an income of $160 an hour. Popcorn costs $5 a bag, and costs $4 a six-pack of energy drink A). Draw a graph of Annie's budget line with six-pack of energy drink on the x- axis, and popcorn on the y-axis. b.) If we know that Annie maximizes her utility with the purchase of 20 bags of popcorn, how many six-pack energy drink she will purchase? (an estimate from your graph & actual calculation), draw an indifference curve reflecting this optimum.

4. Indifference Curve and Budget Line Annie has an income of $160 an hour. Popcorn costs $5 a bag, and costs $4 a six-pack of energy drink A). Draw a graph of Annie's budget line with six-pack of energy drink on the x- axis, and popcorn on the y-axis. b.) If we know that Annie maximizes her utility with the purchase of 20 bags of popcorn, how many six-pack energy drink she will purchase? (an estimate from your graph & actual calculation), draw an indifference curve reflecting this optimum.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Pls solve asap

4. Indifference Curve and Budget Line
Annie has an income of $160 an hour. Popcorn costs $5 a bag, and costs $4 a six-pack of energy
drink
A). Draw a graph of Annie's budget line with six-pack of energy drink on the x- axis, and
popcorn on the y-axis.
b.) If we know that Annie maximizes her utility with the purchase of 20 bags of popcorn,
how many six-pack energy drink she will purchase? (an estimate from your graph &
actual calculation), draw an indifference curve reflecting this optimum.
Please draw graph/

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PLS HELP ASAP ON BOTH
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Output/Income Consumption Savings MPC MPS APC APS 0 80 0-80 = -80 - - - - 100 140 100-140 = -40 0.6 0.4 1.4 -0.4 200 200 200-200=0 0.6 0.4 1 0 300 260 300-260=40 0.6 0.4 0.8666666667 0.1333333333 400 320 400-320=80 0.6 0.4 0.8 0.2 a. Assume Y= 400 Calculate the level of Consumption Hint: plug in 400 for Y into the Consumption and Savings equations, Also, calculate the following APC (C/Y); APS (S/Y) b. Calculate the Multiplier 1/(1-MPC) c. Assume Y= C + I + G + X I=20; G=30 X=0 Use the equation derived in (d) above; use this to Plug in the value of C into the equation. I=Busines Investments G= Government Spending X=Net exports