- find jose's budget constraint • find the price of each good • find the maximum consumption for each good based on his budget constraint . identify how to calculate the maximum consumption . identify where is this maximum consumption located on the graph . find on the graph Jose's specific combination choices of both goods identify and calculate the slope of jose's budget constraint explain that slope in a sentence, as learned in class. .

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Movies
8
7-
2-
1
0
W
2
• find Jose's budget constraint
. find the price of each good
UTICO
T-shirts
Figure 6.2 A Choice between Consumption Goods José has income of $56. Movies cost $7 and T-shirts cost
$14. The points on the budget constraint line show the combinations of affordable movies and T-shirts.
Instructions:
1. Go to the textbook and analyze the Figure 6.2A exercise in Section 6.1.
Think of the paragraph as an exercise and transform the information in data:
5
• find the maximum consumption for each good based on his budget constraint
identify how to calculate the maximum consumption
W
• identify where is this maximum consumption located on the graph
• find on the graph Jose's specific combination choices of both goods
identify and calculate the slope of Jose's budget constraint
. explain that slope in a sentence, as learned in class.
Transcribed Image Text:Movies 8 7- 2- 1 0 W 2 • find Jose's budget constraint . find the price of each good UTICO T-shirts Figure 6.2 A Choice between Consumption Goods José has income of $56. Movies cost $7 and T-shirts cost $14. The points on the budget constraint line show the combinations of affordable movies and T-shirts. Instructions: 1. Go to the textbook and analyze the Figure 6.2A exercise in Section 6.1. Think of the paragraph as an exercise and transform the information in data: 5 • find the maximum consumption for each good based on his budget constraint identify how to calculate the maximum consumption W • identify where is this maximum consumption located on the graph • find on the graph Jose's specific combination choices of both goods identify and calculate the slope of Jose's budget constraint . explain that slope in a sentence, as learned in class.
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