Unformatted text preview: country can write twice as many programs each month)? What happens to the supply curve? 2. When studying for an economics quiz, Sandra likes to eat exactly two peanut butter cookies with every can of root beer that she drinks. She has a budget of $10 to buy snacks during study sessions. Cookies cost $1.50 each and a can of root beer costs $2. 2a. Draw 2 of Sandra’s indifference curves, carefully labeling the graph. 2b. Drawn Sandra’s budget constraint for studying refreshments on the same graph. 2c. How many cookies and cans of root beer does Sandra buy? Explain how you arrived at this answer and show it on the graph above. (If you can’t find the mathematical answer, show graphically how you would find it.) 1d. Now suppose Sandra does not insist on a fixed number of cookies per can of root beer, but has more “typical” preferences. Can Sandra’s indifference curves ever cross? Explain why or why not....
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- Summer '11
- Microeconomics, Computer program, Baltic Sea, Estonia, Latvia, Baltic states, Sandra buy