Assume that you only buy two goods, fish and Fanta soda. You are analyzing your personal consumption for the two goods. Assume that you have a weekl budget of $80, fish costs $5 per Ib and Fanta costs $2 a soda. a. Draw your budget line with Fanta on the y-axis. Calculate the x and y intercepts as well as the slope of the budget line. Include your personal indifference curve to show your optimal consumption between the two goods (assume that your indifference curve is such that you consume positive values of each good).
Assume that you only buy two goods, fish and Fanta soda. You are analyzing your personal consumption for the two goods. Assume that you have a weekl budget of $80, fish costs $5 per Ib and Fanta costs $2 a soda. a. Draw your budget line with Fanta on the y-axis. Calculate the x and y intercepts as well as the slope of the budget line. Include your personal indifference curve to show your optimal consumption between the two goods (assume that your indifference curve is such that you consume positive values of each good).
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 6P
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