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10. Deriving demand from an indifference map Neha recently moved to Philadelphia, where they developed a taste for drinking Americanos and eating danishes. Assume throughout

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10. Deriving demand from an indifference map Neha recently moved to Philadelphia, where they developed a taste for drinking Americanos and eating danishes. Assume throughout this problem that the price of an Americano is held constant at $3. On the following graph, the purple curves ([1 and 12) describe two of Neha's indifference curves. The lines BCl and 3C2 represent two budget constraints. Points X and Y show Neha's optimal consumption bundles subject to the budget constraints. \fGiven the preceding graph and knowing the price of an Americano is $3, Neha'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 Neha's budget constraint and when BC; represents her budget constraint. Then indicate the quantity of danishes consumed in each of those scenarios. Price Consumption when Neha's budget constraint is... (Dollars per danish) (Danishes) BC1 3C2 Given the price-quantity combinations from the preceding table, use the blue line (circle symbol) to plot Neha's demand for danishes on the following graph. Hint: Assume that Neha's demand for danishes iS a Straight line. YOU Should derive tWO points on the demand curve trom the preceding graph. Then place the blue line on the following graph so that it passes through these two points. 10 Demand PRICE (Dollars per danish) 0 2 4 6 8 10 12 14 16 18 20 QUANTITY (Danishes)

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