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Michelle buys only sugar cookies and chocolate milk. In 2020, Michelle earned $200. Chocolate milk costs $4 per quart, and sugar cookies cost $6 per
Michelle buys only sugar cookies and chocolate milk. In 2020, Michelle earned $200. Chocolate milk costs $4 per quart, and sugar cookies cost $6 per dozen. Draw a graph indicating Michelle's budget constraint and an indifference curve indicating optimum consumption. Then suppose that in 2021 all prices decrease by 25% but Michelle's salary remains the same. Round to two decimal places. On the same graph, draw Michelle's new budget constraint and optimum consumption. Briefly explain how Michelle's optimal combination of chocolate milk and sugar cookies in 2021 compares to the optimal combination in year 2020. 1 Draw your own graph on a piece of paper (don't download a graph from the internet). 2 Clearly label all axes and lines. Provide all necessary details. 3 Show your calculations of the price decreases, and add the new information to your graph
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