6. Indifference curves and utility maximization Kevin 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. Kevin budgets $20.00 for making flyers each month. The following graph shows three of Kevin's indifference curves for the number of black-and-white and color flyers that he makes. Use the green line (triangle symbol) to plot Kevin's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Kevin's optimal consumption choice given that budget constraint. BLACK-AND-WHITE FLYERS 1000 900 800 700 600 500 400 300 200 100 0 0 25 50 75 100 125 150 175 200 225 250 COLOR FLYERS Budget Constraint + Optimum ? At the optimum that you indicated on the graph, Kevin's marginal rate of substitution is equal to in black and white per flyer in color.

6. Indifference curves and utility maximization Kevin 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. Kevin budgets $20.00 for making flyers each month. The following graph shows three of Kevin's indifference curves for the number of black-and-white and color flyers that he makes. Use the green line (triangle symbol) to plot Kevin's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Kevin's optimal consumption choice given that budget constraint. BLACK-AND-WHITE FLYERS 1000 900 800 700 600 500 400 300 200 100 0 0 25 50 75 100 125 150 175 200 225 250 COLOR FLYERS Budget Constraint + Optimum ? At the optimum that you indicated on the graph, Kevin's marginal rate of substitution is equal to in black and white per flyer in color.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...

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