Question

i am stuck on this problem and i dont know how and where answer goes

so i just need a follow through of that checklist

JILCILUUILU. TOU CamnuL CIHWB8CK thiS section on vour exam Please only use a PDF! All other types receive zero points! Method 1: Most programs have a feature to "save as" then select PDF. You can do this from MSword in 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 I 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: D Hand Draw your graph. Label both axis and all curves properly. Make sure the quantities on the axis for the budget constraint are correct. Bake sure you have properly illustrated which part is income and which part is substitution effects. Make sure the lines are CLEAR as to where you found the demarcation point and how you found it. s6ehanter 64stil Giehe finalovim essiora l

Answer 1

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