Given the price-quantity combinations from the preceding table, use the blue line (circle symbol) to plot Caroline's demand for danishes on thefollowing graph.Hint: Assume that Caroline's demand for danishes is a straight line. You should derive two points on the demand curve from the preceding graph.Then place the blue line on the following graph so that it passes through these two points.PRICE (Dollars per danish)1010246810 12QUANTITY (Danishes)14161820Demand Caroline recently moved to San Francisco, where they developed a taste for drinking Americanos and eating danishes. Assume throughout thisproblem that the price of an Americano is held constant at $4.On the following graph, the purple curves (₁ and ₂) describe two of Caroline's indifference curves. The lines BC, and BC₂ represent two budgetconstraints. Points X and Y show Caroline's optimal consumption bundles subject to the budget constraints.AMERICANOS1816420D10DANISHES12 14 16 18 20?Given the preceding graph and knowing the price of an Americano is $4, Caroline's available income for Americanos and danishes is $Using the income amount you just computed, complete the following table by finding the price of a danish when BC₁ represents Caroline's budgetconstraint and when BC₂ represents her budget constraint. Then indicate the quantity of danishes consumed in each of those scenarios.PriceWhen Caroline's budget constraint is... (Dollars per danish)BC₁BC₁₂Consumption(Danishes)

Given Caroline consumes two goods: Americano and Danishes. The price of Americano is held constant…

Given the price-quantity combinations from the preceding table, use the blue line (circle symbol) to plot Caroline's demand for danishes on the following graph. Hint: Assume that Caroline's demand for danishes is a straight line. You should derive two points on the demand curve from the preceding graph. Then place the blue line on the following graph so that it passes through these two points. PRICE (Dollars per darsh) 1 + 2 8 QUANTITY (Danishes) B Demand

Given the price-quantity combinations from the preceding table, use the blue line (circle symbol) to plot Caroline's demand for danishes on the following graph. Hint: Assume that Caroline's demand for danishes is a straight line. You should derive two points on the demand curve from the preceding graph. Then place the blue line on the following graph so that it passes through these two points. PRICE (Dollars per darsh) 1 + 2 8 QUANTITY (Danishes) B Demand

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 3SQP

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