á Aplia: Student Question X G 2 elasticity and total reve × C Chegg Study Guided
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á Aplia: Student Question X G 2 elasticity and total reve × C Chegg Study Guided So Price Elasticity of Supply x G elasticity of supply range c courses aplia.com/a servlet/quiz?quiz action-takeQuiz&quiz-probGuid-QNAPCOA801010000003024ea000c0000;&ctx-kimberlym; 0035&ck-4-1464823729019; 0AA a 9. Indifference curves and utility maximization AaAa Tim is in a band and likes to advertise upcoming shows using flyers he posts around the city. Making one black-and-white flyer costs $0.02, and making a flyer in color costs $0.10. Tim budgets $40 for making flyers each month The following graph shows three of Tim's indifference curves for the number of black-and-white and color flyers that he makes Use the purple line (diamond symbols) to plot Tim's budget line. Then place the black point (X symbol) on the graph to indicate Tim's consumer equilibrium (that is, his optimal consumption choice) given that budget line. Dashed drop lines will automatically extend to both axes. BLACK-AND-WHITE FLYERS 2500 2250 2000 1750 1500 1250 1000 750 500 250 Budget Line Cons. Equil. 0 50 100 150 200 250 300 350 400 450 500 COLOR FLYERS HlpClear All At the consumer equilibrium that you indicated on the graph, Tim's marginal rate of substitution is equal to in black and white per flyer in color Session 44:49 t O Ask me anything 6:44 PM 6/1/2016Explanation / Answer
Budget constraint:
0.02x + .10y = 40
if y=0, then x = 2000
if x=0 then y = 400
Therefore, consumer equilibrium is at x=1000 and y=200
MRS: change in y/change in x = (1000-750)/ (200-250) = -5
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