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Eileen recently moved to Dallas, where they developed a taste for drinking Americanos and eating danishes. Assume throughout this problem that the price of an

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Eileen recently moved to Dallas, 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 $2. On the following graph, the purple curves (/1 and /2 ) describe two of Eileen's indifference curves. The lines BC1 and BC2 represent two budget constraints. Points X and Y show Eileen's optimal consumption bundles subject to the budget constraints.\fGiven the preceding graph and knowing the price of an Americano is $2, Eileen's available income for Americanos and danishes is Using the income amount you just computed, complete the following table by nding the price of a danish when BC1 represents Eileen'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 Eileen's budget constraint is... (Dollars per danish) (Danishes) BC1 3C2 Given the pricequantity combinations from the preceding table, use the blue line (circle symbol) to plot Eileen's demand for danishes on the following graph. Hint: Assume that Eileen's demand for danishes is a straight line. You should derive two points on the demand curve from the preceding graph. Then place the blue line on the following graph so that it passes through these two points. /'\\ K3!" 10 Demand PRICE (Dollars per danish) 0 2 4 6 8 10 12 14 16 18 20 QUANTITY (Danishes) Given the preceding graph and knowing the price of an Americano is $2, Eileen's available income for Americanos and danishes is $8 Using the income amount you just computed, complete the following table by finding the price of a danish when BC1 represents Eileen's budget constraint and when BC2 represents her budget constraint. Then indicate the quantity of danishes consumed in each of those scenarios. Price Consumption When Eileen's budget constraint is... (Dollars per danish) (Danishes) BC1 4 4 BC2 2 8Hint: Assume that Eileen's demand for danishes is a straight line. You should derive two points on the demand curve from the preceding graph. Then place the blue line on the following graph so that it passes through these two points. /'\\ L?) 10 - Demand PRICE (Dollars per danish) a 2 4 a 8 10 12 14 16 1e 20 QUANTITY (Danishes)

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