For lunch, Ada prefers to eat yogurt and pizza in fixed proportions. When she eats X pints

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For lunch, Ada prefers to eat yogurt and pizza in fixed proportions. When she eats X pints of yogurt, she prefers to eat √X ounces of pizza. If she has X pints of yogurt and more than √X ounces of pizza, she eats all the yogurt along with √X ounces of pizza, and throws the extra pizza away. If she has X pints of yogurt and fewer than √X ounces of pizza (say, Younces), she eats all the pizza along with Y2 pints of yogurt, and throws the extra yogurt away. In Problem 6 from the end of Chapter 4, you drew Ada's indifference curves. Now plot her income-consumption curve. Does the shape of that curve depend on prices? Assuming yogurt costs $1 per pint and pizza costs $1 per slice, draw her Engel curves for yogurt and pizza.
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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