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

Chelsea football club-investment appraisal, Chelsea Football Club a) Re...

Chelsea Football Club a) Reasons could include: the probable for CFC to return healthy profits; CFC may have been undervalued at the time of purchase; Abramovich could simply b

What is the function of non-government organisations, What is the function ...

What is the function of Non-Government Organisations, within the promotion of development? Advocates argue NGOs (Non-Government Organisations): • Hold DCs accountable for e

Calculate the market to book ratio, Calculate the market value of your corp...

Calculate the market value of your corporation at the end of the sample period.  Multiply the last price in the sample times the number of shares outstanding at that time.  You can

Explain the term end stage assessment in project management, Explain about ...

Explain about the term end stage assessment in project management methods. End stage assessment: At the end of every stage of a project, the project manager is needed to

Global finance crisis, Australia has emerged from the Global Finance Crisis...

Australia has emerged from the Global Finance Crisis (GFC) as "the strongest economy in the developed world" (Editorial, The Australian, 11 December 2009). The economic editor of T

Why is debt management difficult in less developed countries, Why is debt m...

Why is debt management difficult in Less Developed Countries? One of the biggest challenges facing Less Developed Countries debt management is making sure $ interest payments c

FACTORS DETERMINANT OF PRICE, Examine the factors that determine the price ...

Examine the factors that determine the price of computers in a free market. In recent years, the price of personal computers has continued to fall even in the face of increasing de

Define the aggregate price level in the macroeconomics, Define the aggregat...

Define the aggregate price level in the macroeconomics. Aggregate Price Level: A nominal measure is a measure which has not been adjusted for modifications into prices

Market analysis, The Australian government administers two programs that af...

The Australian government administers two programs that affect the market for cigarettes. First, media campaigns and labelling requirements aimed at making public aware of the dan

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