Answer Happy

Kevin is in a band and likes to advertise upcoming shows using flyers he posts around the city. Making one black-and-white flyer costs $0.02, and making a flyer in color costs $0.08. Kevin budgets $14.00 for making flyers each month. The following graph shows three of Kevin's indifference curves for the number of black-and-white and color flyers that he makes. Use the green line (triangle symbol) to plot Kevin's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Kevin's optimal consumption choice given that budget constraint.
? 1000 900 Budget Constraint 800 700 + 600 Optimum BLACK-AND-WHITE FLYERS 500 400 300 200 100 0.25 flyers 0 0 25 50 75 1 flyer 175 200 225 250 100 125 150 COLOR FLYERS 4 flyers 16 flyers At the optimum that you indicated on the graph, Kevin's marginal rate of substitution is equal to in black and white per flyer in color.