On a different sheet of graph paper plot indifference curve 2 again and then indifference curve4: 60,25, 50,30, 40,35, 30,60,20,105. Draw her budget constraint ($100) and show the bundle. The price of oranges falls to $0. 67. Draw her budget constraint and determine her optimal bundle. Now draw a hypothetical? constraint and illustrate the income, the substitution effect, and the total effect. Estimate the increase in oranges consumed for each of the three effects (oranges are a normal good). You need to draw graphs.
Originally posted 2018-07-05 16:53:17. Republished by Blog Post Promoter