Gilberto 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. Gilberto budgets $20.00 for making flyers each month. The following graph shows three of Gilberto's indifference curves for the number of black-and-white and color flyers that he makes. Use the green line (triangle symbol) to plot Gilberto's budget line. Then, place the black point (plus symbol) on the graph to indicate Gilberto's consumer equilibrium given that budget line. BLACK-AND-WHITE FLYERS 1000 900 800 700 600 500 400 300 200 100 0 0 25 50 75 100 125 150 COLOR FLYERS +¹3 ¹¹/₂ ¹4₁ 175 200 225 250 Budget Line Consumer Equilibrium ? At the consumer equilibrium that you indicated on the graph, Gilberto's marginal rate of substitution is equal to per flyer in color. in black and white
Gilberto 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. Gilberto budgets $20.00 for making flyers each month. The following graph shows three of Gilberto's indifference curves for the number of black-and-white and color flyers that he makes. Use the green line (triangle symbol) to plot Gilberto's budget line. Then, place the black point (plus symbol) on the graph to indicate Gilberto's consumer equilibrium given that budget line. BLACK-AND-WHITE FLYERS 1000 900 800 700 600 500 400 300 200 100 0 0 25 50 75 100 125 150 COLOR FLYERS +¹3 ¹¹/₂ ¹4₁ 175 200 225 250 Budget Line Consumer Equilibrium ? At the consumer equilibrium that you indicated on the graph, Gilberto's marginal rate of substitution is equal to per flyer in color. in black and white
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section20.1: Utility Theory
Problem 3ST
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