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2A. Draw an indifference map for person J with three indifference curves for two goods, Good X and Good Y-setting Good Y
Posted: Mon Apr 18, 2022 9:20 am
by answerhappygod
- 2a Draw An Indifference Map For Person J With Three Indifference Curves For Two Goods Good X And Good Y Setting Good Y 1 (23.82 KiB) Viewed 19 times
2A. Draw an indifference map for person J with three indifference curves for two goods, Good X and Good Y-setting Good Y as a numeraire on the vertical axes. 2B. Draw a budget line that is tangent to the middle indifference curve and identify on the two axis the optimal quantity consumed of Good X and Good Y as X1 and Y1*. 2C. Without moving your indifference curves, return to your "map" in (a) and change the budget line if the price for Good X increases from p1 to p2 and the income of person Jincreases. Identify on the two axes the new optimal quantity consumed of Good X and Good Y as X2' and Y2".