Consider the following diagram. This diagram depicts indifference curves of three different consumers: Elena, Peter and Tim. They all face the same budget constraint (the bold black line). A, B, C, D represent some of the possible consumption bundles. Answer the following questions using this graph. (This question consists of 3 parts, (a)-(c)) I have added the graph as an image. (a) In the above graph (on Page 18), shade all the “Worse-than-C” bundles for Elena (assuming she likes to consume both Muffins and Coffee). (b) Out of the three individuals, which individual consumes Muffins and Coffee only in fixed proportions? (c) Do you think Point A (or consumption bundle A) is optimal for Peter? Explain why or why not.
Consider the following diagram. This diagram depicts indifference curves of three different consumers: Elena, Peter and Tim. They all face the same budget constraint (the bold black line). A, B, C, D represent some of the possible consumption bundles. Answer the following questions using this graph. (This question consists of 3 parts, (a)-(c)) I have added the graph as an image. (a) In the above graph (on Page 18), shade all the “Worse-than-C” bundles for Elena (assuming she likes to consume both Muffins and Coffee). (b) Out of the three individuals, which individual consumes Muffins and Coffee only in fixed proportions? (c) Do you think Point A (or consumption bundle A) is optimal for Peter? Explain why or why not.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Consider the following diagram. This diagram depicts indifference
consumers: Elena, Peter and Tim. They all face the same budget constraint (the bold black
line). A, B, C, D represent some of the possible consumption bundles. Answer the following
questions using this graph. (This question consists of 3 parts, (a)-(c))
I have added the graph as an image.
(a) In the above graph (on Page 18), shade all the “Worse-than-C” bundles for Elena
(assuming she likes to consume both Muffins and Coffee).
(b) Out of the three individuals, which individual consumes Muffins and Coffee only in
fixed proportions?
(c) Do you think Point A (or consumption bundle A) is optimal for Peter? Explain why
or why not.
(assuming she likes to consume both Muffins and Coffee).
(b) Out of the three individuals, which individual consumes Muffins and Coffee only in
fixed proportions?
(c) Do you think Point A (or consumption bundle A) is optimal for Peter? Explain why
or why not.
![Question 2
Consider the following diagram. This diagram depicts indifference curves of three different
consumers: Elena, Peter and Tim. They all face the same budget constraint (the bold black
line). A, B, C, D represent some of the possible consumption bundles. Answer the following
questions using this graph. (This question consists of 3 parts, (a)-(c)) [10 marks]
Coffee
Peter
C
B
A
D
Tim
Elena
Muffins](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44acb7b1-acc9-4a5e-97a4-f8026b7df298%2F820dd905-9312-44bc-997a-76746d5e0f7f%2Fpw20tdp8_processed.png&w=3840&q=75)
Transcribed Image Text:Question 2
Consider the following diagram. This diagram depicts indifference curves of three different
consumers: Elena, Peter and Tim. They all face the same budget constraint (the bold black
line). A, B, C, D represent some of the possible consumption bundles. Answer the following
questions using this graph. (This question consists of 3 parts, (a)-(c)) [10 marks]
Coffee
Peter
C
B
A
D
Tim
Elena
Muffins
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Hello,
I am still a little confused with the answer to the first part. I know that A, B, and D are worse-than-C bundles, but how would I go about shading the graph? Could I get a shot of the graph shaded?
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