6. Indifference curves and utility maximization Gilberto plays the violin as part of a string trio and advertises booking opportunities using brochures he distributes in bars around the city. Making one grayscale brochure costs $0.02, but adding color increases the cost to $0.08 per brochure. Gilberto sets aside a monthly budget of $14.00 for creating brochures. The following graph shows three of Gilberto's indifference curves for the number of grayscale and color brochures that he makes. Use the green line (triangle symbol) to plot Gilberto's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Gilberto's optimal consumption choice given that budget constraint. GRAYSCALE BROCHURES 1000 000 800 700 500 100 400 300 Budget Constraint Optimum
6. Indifference curves and utility maximization Gilberto plays the violin as part of a string trio and advertises booking opportunities using brochures he distributes in bars around the city. Making one grayscale brochure costs $0.02, but adding color increases the cost to $0.08 per brochure. Gilberto sets aside a monthly budget of $14.00 for creating brochures. The following graph shows three of Gilberto's indifference curves for the number of grayscale and color brochures that he makes. Use the green line (triangle symbol) to plot Gilberto's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Gilberto's optimal consumption choice given that budget constraint. GRAYSCALE BROCHURES 1000 000 800 700 500 100 400 300 Budget Constraint Optimum
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 9P
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6. Indifference curves and utility maximization Giberto plays the violin as part of a string trio and advertises booking opportunities using brochures he distributes in bars around the oity. Making one graysale brochure costs$0.02, but adding color increases the cost to$0.08per brochure. Gilberto sets aside a monthly budget of$14,00for creating brochures. The following graph shows three of Gaberto's indifference curves for the number of grayscale and color brochures that he makes. Use the green line (triangle symbol) to plot Giberto's budget constraint. Then, place the black point (alus symbol) on the graph to indicate Giberto's optimal consumption choice given that budget constraint. optimal consumption choice given that budget constraint.
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