QUESTION 44A. Draw a map of three indifference curves with good A on the horizontal axis and good B onthe vertical axis.48. Draw a budget constraint line tangent to the middle indifference curve. Identify theoptimal quantity of good A on the horizontal axis as A1.4C. Rotate the budget constraint line if the price of good A increases. Make the new budgetconstraint line tangent to a different indifference curve. Identify the new optimal quantity ofgood A on the horizontal axis as A2.4D. Construct a 2-point demand curve for good A with the two quantity points A1 and A2 andinitial price p1 and new changed price p2.

This point (A1) is the optimal choice of good A under the given budget.

Answered: QUESTION 4 4A. Draw a map of three…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section6.A: Appendix: Indifference Curves And Utility Maximization

Problem 2AQ

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