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PLEASE ANSWER GRAPH AND ANSWERS CLEARLY, I WILL THUMBS UP Simone recently moved to Philadelphia, where they developed a taste for drinking Americanos and eating
PLEASE ANSWER GRAPH AND ANSWERS CLEARLY, I WILL THUMBS UP
Simone 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 $2. On the following graph, the purple curves (I1 and I2 ) describe two of Simone's indifference curves. The lines BC1 and BC2 represent two budget constraints. Points X and Y show Simone's optimal consumption bundles subject to the budget constraints. Using the income amount you just computed, complete the following table by finding the price of a danish when BC C1 represents Simone's budget constraint and when BC2 represents her budget constraint. Then indicate the quantity of danishes consumed in each of the scention Given the price-quantity combinations from the preceding table, use the blue line (circle symbol) to plot Simone's demand for the following graph. Hint: Assume that Simone'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 pointsStep by Step Solution
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