Mary has two dinner options av

Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a restaurant for $260 per meal. Her weekly budget is $2500.

iv. Suppose the price of a home cooked meal increases to $200 and income increases to $4200. Show the impact of the new budget line relative to the original budget line. What would be the new marginal rate of substitution that corresponds to the optimal consumption choice? Interpret the marginal rate of substitution

Mary has two dinner options av

Mary has two dinner options available: eating a home cooked meal for $150 per

meal, or at a restaurant for $260 per meal. Her weekly budget is $2500.

  1. Draw Mary’s budget constraint, (put home cooked meal on the horizontal

axis) showing the trade-off between a home cooked meal and eating at a

restaurant.

 

  1. Draw an indifference curve showing the optimum choice. Label the

optimum as point A. 

iii. What would be the marginal rate of substitution at the point that

corresponds to the optimal consumption choice? Interpret the marginal

rate of substitution. 

  1. Suppose the price of a home cooked meal increases to $200 and income

increases to $4200. Show the impact of the new budget line relative to the

original budget line. What would be the new marginal rate of substitution

that corresponds to the optimal consumption choice? Interpret the

marginal rate of substitution

Mary has two dinner options av

Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a restaurant for $260 per meal. Her weekly budget is $2500.

iii. What would be the marginal rate of substitution at the point that
corresponds to the optimal consumption choice? Interpret the marginal
rate of substitution. 
iv. Suppose the price of a home cooked meal increases to $200 and income
increases to $4200. Show the impact of the new budget line relative to the
original budget line. What would be the new marginal rate of substitution
that corresponds to the optimal consumption choice? Interpret the
marginal rate of substitution. 

Mary has two dinner options av

Mary has two dinner options available: eating a home cooked meal for $150 per
meal, or at a restaurant for $260 per meal. Her weekly budget is $2500.

 

i. Draw Mary’s budget constraint, (put home cooked meal on the horizontal
axis) showing the trade-off between a home cooked meal and eating at a
restaurant.

ii.Draw an indifference curve showing the optimum choice. Label the
optimum as point A.

 

iii. What would be the marginal rate of substitution at the point that
corresponds to the optimal consumption choice? Interpret the marginal
rate of substitution

 

 

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more