Homework Answers
According to the graph mentioned,
let blouses be x and skirts be y.
a) Now, Nikki spends all her income on 5 blouses. Hence,
5x = 150, or, x= 150/5= 30
Hence, price of blouses is $30 per unit.
b) Similarly, she spends all her income on 10 skirts. Hence,
10y = 150, or, y= 150/10= 15
Hence, price of skirts is $15 per unit.
c) B. No, the indifference curve going through this point is not on the tangent to Nikki's budget constraint; In order for achieving an optimal choice, the indifference curve needs to be tangent to the budget line.
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In the following budget constraint- indifference curve graph, Nikki has $150 to spend on blouses and...
ON-E103-16466 > Assignments > Assignment 7 Assignment 7 2020 Spring E103 Microeconomics F2F (NC) (1) zach...
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budget constraint
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