Jacob receives an allowance of $12 per week. He spends all his allowance on ice cream cones and cans of Lemon Fizz soda. When the price of ice cream cones is $0.50 per cone and the price of Lemon Fizz is $1 per can, Jacob faces the budget constraint "BC,'. Suppose the price of ice cream cones rises to $2 per cone Use the line drawing tool to draw in Jacob's new budget constraint. Label this line BC₂¹ Carefully follow the instructions above, and only draw the required objects. Ice cream (number of cones) ***** 22- 20- 18- 16- 14- 124 10- 8 24 AC₁ 9 10 11 12 13 14 Lemon Fizz (number of cans)

Jacob receives an allowance of $12 per week. He spends all his allowance on ice cream cones and cans of Lemon Fizz soda. When the price of ice cream cones is $0.50 per cone and the price of Lemon Fizz is $1 per can, Jacob faces the budget constraint "BC,'. Suppose the price of ice cream cones rises to $2 per cone Use the line drawing tool to draw in Jacob's new budget constraint. Label this line BC₂¹ Carefully follow the instructions above, and only draw the required objects. Ice cream (number of cones) ***** 22- 20- 18- 16- 14- 124 10- 8 24 AC₁ 9 10 11 12 13 14 Lemon Fizz (number of cans)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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