Consumption bundles, economics homework help


Graph with pizza on the x-axis and apples are on the y-axis. There is a straight line budget constraint sloping down and 3 upward concave indifference curves labelled U1, U2 and U3. U1 is closest to the origin (lowest utility) and intersects the budget constraint at point W. U2 is tangent to the budget constraint at pizza = 6 and apples = 30. This is point X. U2 also has a point Y labelled which lies beyond the budget constraint. U3 is the indifference curve furthest from the origin. It does not touch the budget constraint. It has a point Z labelled at pizza = 6 and apples = 50.

FYI – All the point are supposed to lie on the indifference curves for these questions even if they appear a touch off.

Based on the budget constraint and 3 indifference curves shown here we know that:

A. Consumption bundles Y and X provide the same utility
B. Consumption bundles Y and Z provide the same utility
C. Apples cost $1 and pizzas cost $4
D. Consumption bundles X and W provide the same utility

Needs help with similar assignment?

We are available 24x7 to deliver the best services and assignment ready within 3-4 hours? Order a custom-written, plagiarism-free paper

Order Over WhatsApp Place an Order Online

Do you have an upcoming essay or assignment due?

All of our assignments are originally produced, unique, and free of plagiarism.

If yes Order Similar Paper