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

Quantity of salt demanded, why does the quantity of salt demanded tend to b...

why does the quantity of salt demanded tend to be unresponsive to changes in its price?

What is success effectiveness of world trade organisation, What is the succ...

What is the success effectiveness of World Trade Organisation in the promotion of development? Success effectiveness of World Trade Organisation in the promotion of developmen

Find the median voter eqm, In the model with utilities W i = c i + α l...

In the model with utilities W i = c i + α ln(x i ) where individuals are endowed with ability levels w p m R and form fractions π p , π m , π r with π m > π p , π r

How could quality culture behaviours be applied in hospital, How could the ...

How could the quality culture behaviours be applied in a hospital? The total quality management approach and culture are extremely readily applied to a hospital. Usually, peopl

How can value management be use when project is under way, When a project i...

When a project is under way, how can value management be utilized to estimate proposed changes? While potential changes to a project have been acknowledged, value management ca

Fiscal and monitory olicy, Assess the impact of fiscal and monetory policy ...

Assess the impact of fiscal and monetory policy on business organisations and their activities

Economic theories applied in business economics, Explain how the economic t...

Explain how the economic theories applied in business economics

The spillover effect, QUESTION 1 i) Use a simple human capital model to...

QUESTION 1 i) Use a simple human capital model to explain the rationale for undertaking higher education ii) Why do some people vary significantly in the amounts of human ca

Examine the specific aims of e-government initiatives, QUESTION ICT too...

QUESTION ICT tools are deemed to present considerable opportunities to support a nations' sustainable development. The potential of e-Government in developing countries however

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