help with simple queastion
Rhoda Dendron has $96 to spend on compact discs (cds) and movies. The price of movies is $8. The price of cds is $16. Both goods are normal goods.
1- Draw three of her indifference curves; they should indicate utility levels of 100, 200, and 300.
- Assume her optimal bundle is at 3 cds and 6 movies yielding utility of 200.
- Suppose the price of movies rises to $16. Draw her new budget constraint.
- Assume her new optimal bundle is at 3 cds and 3 movies yielding utility of 100.
10 years ago
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