Question

AGEC 105 Homework 3 ur great grandmother recently visited your apartment and was horrified by your lack of penguin apparel. She has given you $400 which must all be spent on the two goods penguin themed cookware sets and penguin curios so you can spruce up your apartment. Penguin's cookware's price is $100 and a penguin curios price is S40. BE NEAT: (USE A RULER) 1. A nswer the following concerning your economic decisions (review) Your indifference curves are graphed below, graph your budget line. Mark this line as the "original budget line." a. Mark on the graph your decision that maximizes your utility subject to your budget constraint. How many cookware sets and curios do you buy? 4 o 3 2 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Curios On the following graph, graph your original budget constraint from problem 1. Mark this line the "original budget line." Also, graph your budget constraints if curios's price changes to $25and $50. Correctly mark these budget constraints as "price decrease" and "price increase 2.

Answer 1