A consumer is choosing between magazines and books. Several indifference curves are shown on the diagram to the right. 50 Consumer income allocated for these two goods is equal to $500. The price of books (P,) is equal to $10.00. 45- 40- 1.) Use the line drawing tool to draw four appropriate budget lines to represent a consumer optimum at different prices for magazines (P,) for all indifference curves 35 shown. Properly label the lines. 30- 2.) Use the line drawing tool to draw the price consumption curve for magazines. Properly label this line. 25- 20- Carefully follow the instructions above, and only draw the required o bjects. 15 10- 5- 0 10 20 30 40 50 60 70 80 90 100 110 120 Books Magazines
A consumer is choosing between magazines and books. Several indifference curves are shown on the diagram to the right. 50 Consumer income allocated for these two goods is equal to $500. The price of books (P,) is equal to $10.00. 45- 40- 1.) Use the line drawing tool to draw four appropriate budget lines to represent a consumer optimum at different prices for magazines (P,) for all indifference curves 35 shown. Properly label the lines. 30- 2.) Use the line drawing tool to draw the price consumption curve for magazines. Properly label this line. 25- 20- Carefully follow the instructions above, and only draw the required o bjects. 15 10- 5- 0 10 20 30 40 50 60 70 80 90 100 110 120 Books Magazines
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A consumer is choosing between magazines and books. Several indifference
curves are shown on the diagram to the right.
50-
Consumer income allocated for these two goods is equal to $500. The price of
books (P,) is equal to $10.00.
45-
40-
1.) Use the line drawing tool to draw four appropriate budget lines to represent a
consumer optimum at different prices for magazines (P,) for all indifference curves
35
shown. Properly label the lines.
30-
2.) Use the line drawing tool to draw the price consumption curve for magazines.
Properly label this line.
25-
Carefully follow the instructions above, and only draw the required objects.
15-
10-
10 20 30 40 50 60 70 80 90 100 11o 120
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