Question
Given an income equation, $150 = ($10 x wine) + ($5 x crackers) and utility function: U = (W.75C.25) 1. Calculate the indifference curve at
Given an income equation, $150 = ($10 x wine) + ($5 x crackers) and utility function: U = (W.75C.25)
1. Calculate the indifference curve at the optimal levels of consumption of W and C and graph.
2. Economically speaking, what is going on at that point?
3. Using the numbers from above, find the consumer equilibrium condition or rule and explain.
4. Put wine on the x axis and crackers on the y axis and find both intercept points and solve for and graph budget constraint for these two goods. What is the slope of thes budget line?
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College Algebra
Authors: Margaret L. Lial, John Hornsby, David I. Schneider, Callie Daniels
12th edition
134697022, 9780134313795 , 978-0134697024
