Remember our friend Ralph Rigid from Chapter 3? His favorite diner, Food for Thought, has adopted the
Question:
(a) Use blue ink to show Ralph’s budget set. On this graph, the horizontal axis measures the time of day that he eats lunch, and the vertical axis measures the amount of money that he will have to spend on things other than lunch. Assume that he has $20 total to spend and that lunch at noon costs $10.
(b) Recall that Ralph’s preferred lunch time is 12 noon, but that he is willing to eat at another time if the food is sufficiently cheap. Draw some red indifference curves for Ralph that would be consistent with his choosing to eat at 11 A.M.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: