Jamal has a budget equal to AED120 for milk shakes and pizza. The price of each slice of pizza is AED40 and the price of each shake is AED10. Jamal's demand curve for pizza was derived from his optimum change after the decrease in the price of pizza from 40 to 20. Based on the budget line equation and table 1, sketch on figure 2 the initial and new optimum quantities for pizza and shakes. Show your work. Price of pizza Quantity demanded of pizza 20 40 Shakes 5 2 Pizza
Jamal has a budget equal to AED120 for milk shakes and pizza. The price of each slice of pizza is AED40 and the price of each shake is AED10. Jamal's demand curve for pizza was derived from his optimum change after the decrease in the price of pizza from 40 to 20. Based on the budget line equation and table 1, sketch on figure 2 the initial and new optimum quantities for pizza and shakes. Show your work. Price of pizza Quantity demanded of pizza 20 40 Shakes 5 2 Pizza
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 8P
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