a1q9 - I 9 Masiow's budget constraint Haslow has certain...

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Unformatted text preview: I 9. Masiow's budget constraint Haslow has certain needs for food and dothihg. @' a. The price offend l5 $32G per pound and the price of clothing l5 $12 per garment. At these prices, Naslow consumes six pounds of food and 1D garments per month. with the blue line {circle symbols}, draw Masiow's budget constraint. With the red point {cross symbol}, show the bundle that he selects, {10. 6]. Assume that Haslow is a utility maximizer. FIJBD anu ndsl Foot: lF'uunds'l 2,0 - ze— 'fiéfifiu .3 “I | | | | | | | l 47er M “I | | | | | | | | -'Budget2'- fl 1,,l||||||||—,—I —————— -- x 12 12! | | | | | | | | ‘IHIIIIIIIHMR E- | | | | I I I I _ i | | | | | | | I | I ' | | | | I ______ || || || 5 3 10 12 111 11!: 13 2f! 12 H. 15 13 2t: CLOTHING lNurnher of garments] .. CLflTl-IINE Member of garments] m m '3' b. New International child labor laws have been passed, causing the prloe of clothing to Increase to $20 per garment. With the green llne {triangle symbols), draw Masiowis new budget constraint. @ c. By how much would we have to increase Haslow's income for him to afford his original market basket of 543: pounds offend and 1D garments per monfl1?m-_ @ d. Now suppose the government gave Maslnw a tax rebate large enough for nlrn to afiorcl the hundie {113.6}. WIth the purple iine {diamond symbols]. graph Winslow's new budget oonstraint. ...
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