Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please see attached Cappuccinos, C cost $3 each, and compact disks, CD cost $9 each. Income is $54. a) Draw the budget line, note that

please see attached

image text in transcribed
Cappuccinos, C cost $3 each, and compact disks, CD cost $9 each. Income is $54. a) Draw the budget line, note that cappuccinos are on the horizontal axis. Budget Line 10- Compact disks 6- 4 2 0 2 10 12 14 16 18 20 Reset Cappuccinos b) What is the slope of the budget line in (a)? (Make sure your answer is accurate to two decimal places) Slope = 0 c) If the price of cappuccinos rises to $6, draw this line on the graph above (select the drop-down at the top of the graph and select "New Budget Line" to draw this line). What is the slope of this new budget line? (Make sure your answer is accurate to two decimal places) Slope = 0 d) At the initial set of prices, are the following combinations of goods in the feasible set: (11C and 5CD), (7C and 4CD)? (11C and 5CD) (Select one) (7C and 4CD) (Select one)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial economics

Authors: william f. samuelson stephen g. marks

7th edition

9781118214183, 1118041585, 1118214188, 978-1118041581

More Books

Students also viewed these Economics questions

Question

=+ At what rate does capital per person grow?

Answered: 1 week ago