Question

need checklist completed, and eligible to read, my homework is something we barely talked about in class

II DIOMCTAT UIOU SUm on URO no the computer lab! Method 2: Print and then select a PDF printer (Not all computers can do this!) I. You have a monthly income of 800 dollars. You want to spend your income on party drinks and new dance music. The price of party drinks are 4 dollars each. New dance music costs 1 dollar each. Draw your budget constraint and a reasonable indifference curve. On the same graph, show what would happen if the cost of new dance music increased to 2 dollars each with a new budget constraint and indifference curve. Illustrate how the change in quantity breaks down into the substitution and income effects. Short Answer Submission Checklist: O Hand Draw your graph. O Label both axis and all curves properly O Make sure the quantities on the axis for the budget constraint are correct. O Bake sure you have properly illustrated which part is income and which part is substitution effects. O Make sure the lines are CLEAR as to where you found the demarcation point and how you found it. Login: K are here to assist you.

Answer 1

Dhe tante party drinks and devote new dance musik. cloudy and seems to be complimentary in natine, le, Here Is are L- shaped Funiture But 4x + x 2 = 800 Pixi + Bx2 = M] x POD Met + x = [in interrept form] The initial Bl. has been labeller ABO The initial equilibrium ip at i, where 1G is lower to ABo, corresponding V K Agt 2 ges to 2 new B.L.: 4x + 2x2 = 800 Thip budget lire has been devole by The new equilibrium ip at E2, corresponding to (xi, x)

доод , Suz da good, us Спиралаули и 1/aluИ Wh enthu pa get is attributw to inna fer (x - X) is due to love effer and la ole ozu.