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Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735 Exercise 9
[Uses the Indifference Curve Approach]
a. Draw a budget line for Lynne,who has a weekly income of $225. Assume that she buys food and clothes,and that food costs $15 per bag while clothes cost $25 per item. Add an indifference curve for Lynne that is tangent to her budget line at the combination of 3 items of clothing and 10 bags of food.
b. Draw a new indifference curve diagram for Lynne,showing what will happen if her tastes change,so that she gets more satisfaction from an extra item of clothing,and less satisfaction from an extra bag of food.
c. Draw a new indifference curve diagram for Lynne,showing what will happen if she decides to join a nudist colony.
a. Draw a budget line for Lynne,who has a weekly income of $225. Assume that she buys food and clothes,and that food costs $15 per bag while clothes cost $25 per item. Add an indifference curve for Lynne that is tangent to her budget line at the combination of 3 items of clothing and 10 bags of food.
b. Draw a new indifference curve diagram for Lynne,showing what will happen if her tastes change,so that she gets more satisfaction from an extra item of clothing,and less satisfaction from an extra bag of food.
c. Draw a new indifference curve diagram for Lynne,showing what will happen if she decides to join a nudist colony.
Explanation
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Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
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