Draw indifference curves - optimal consumption, Business Economics

Assignment Help:

You are allocating money between pizza and Chinese food over a month. You like a variety. 

 (a) Letting C denote the quantity of Chinese meals you consume in a month and P denote the quantity of pizza, construct a diagram and draw some indifference curves that might represent your preferences.  

(b) Suppose that you have $100 to spend per month on the two and pizzas cost $5 each and Chinese meals cost $10. Draw your budget line and an indifference curve with a consumption level that you regard as being optimal.  

(c) If the price of pizza falls, show how your optimal consumption might change? Could you perhaps consume more Chinese food after the change?


Related Discussions:- Draw indifference curves - optimal consumption

Explain the term capital accumulation, (i) Explain the term capital accumu...

(i) Explain the term capital accumulation. (ii) Explain the different views on economic development. (iii) In the golden age of globalization countries, especially develop

Define methods used to monitor supplier performance, Define methods which c...

Define methods which can be used to monitor supplier performance. Methods to monitor supplier performance are as follows: a. Approval of designs: The organisation comments o

Type of unemplyment, as a result of 2008 financial crisis, there was loss o...

as a result of 2008 financial crisis, there was loss of construction jobs in us, since home developers stopped building new homes. in your opinion which type of unemplyment is res

Plot the budget line and evaluate slope, This problem illustrates a consume...

This problem illustrates a consumer's decision to be homeless in the presence of a minimum housing-consumption constraint, imposed through misguided government regulation. Let c

What are the import substitution policies, What are the import substitution...

What are the import substitution policies? Import substitution policies are as follows: Need trade restrictions for example, tariffs and quotas to defend infant industr

Work of international monetary fund and world bank, Does the work of the In...

Does the work of the International Monetary Fund and World Bank overlap? Less developed countries turn to the: • International Monetary Fund to resolve debt repayment, exch

What is dependency theory, What is dependency theory? Dependency The...

What is dependency theory? Dependency Theory: Dependency theory uses economic and political theory to describe how the procedure of international trade and domestic deve

Development through resource transfer - low income countries, DEVELOPMENT T...

DEVELOPMENT THROUGH RESOURCE TRANSFER is explained below The chief idea here was that (as mentioned previous) poor countries suffered from the savings and foreign exchange gaps

Net exports, Net exports normally decrease with the effect when aggregate o...

Net exports normally decrease with the effect when aggregate output decline. When a concretionary fiscal policy is implemented net exports will go up . When government maintain the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd