micro exam 4

micro exam 4 - Micro Exam 4 - Due to me by Tuesday December...

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Micro Exam 4 - Due to me by Tuesday December 20 th at 1PM. Type your answers and draw the pictures neatly. You may use your book to help you. You may not use ANYONE else other than me! Make sure your name is on each page that you email me. Failure to do this will result in a 5 point penalty on the exam. Short Answer 1. Answer the following questions based on the table. A consumer is able to consume the following bundles of rice and beans when the price of rice is $2 and the price of beans is $3. (20 points) RICE BEANS 12 0 6 4 0 8 a. How much is this consumer's income? b. Draw a budget constraint given this information. Label it B. c. Construct a new budget constraint showing the change if the price of rice falls $1. Label this C. d. Given the original prices for rice ($2) and beans ($3), construct a new budget constraint if this consumer's income increased to $48. Label this D. 2. Using the graph shown, answer the following questions. (20 points) a. Assuming we start out on the lowest budget line (endpoints of 5 M&M’s and 10 Skittles)
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micro exam 4 - Micro Exam 4 - Due to me by Tuesday December...

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