Jamal has a budget equal to AED120 for milk shakes and pizza. The price of each slice of pizza is AED40 and the price of each shake is AED10. Jamal's demand curve for pizza was derived from his optimum change after the decrease in the price of pizza from 40 to 20. Based on the budget line equation and table 1, sketch on figure 2 the initial and new optimum quantities for pizza and shakes. Show your work. Price of pizza Quantity demanded of pizza 20 40 Shakes 5 2 Pizza

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Jamal has a budget equal to AED120 for milk shakes and pizza. The price of each slice of pizza is AED40
and the price of each shake is AED10.
Jamal's demand curve for pizza was derived from his optimum change after the decrease in the price of
pizza from 40 to 20.
Based on the budget line equation and table 1, sketch on figure 2 the initial and new optimum quantities
for pizza and shakes. Show your work.
Price of pizza Quantity demanded of pizza
20
40
Shakes
C
5
2
A
Pizza
Transcribed Image Text:Jamal has a budget equal to AED120 for milk shakes and pizza. The price of each slice of pizza is AED40 and the price of each shake is AED10. Jamal's demand curve for pizza was derived from his optimum change after the decrease in the price of pizza from 40 to 20. Based on the budget line equation and table 1, sketch on figure 2 the initial and new optimum quantities for pizza and shakes. Show your work. Price of pizza Quantity demanded of pizza 20 40 Shakes C 5 2 A Pizza
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