Suppose Craig considers oranges and grapefruits to be perfect substitutes. Craig is willing to trade three (3) oranges for one (1) grapefruit. Craig has $24 to spend on oranges and grapefruits, and the price of oranges is PO = $1.00, and the price of grapefruits is PG = $2.00. On a graph, draw Craig’s Budget Constraint, identify Craig’s optimal bundle, and draw the Indifference Curve that goes through that bundle. Please put the quantity of oranges (O) on the vertical axis, and the quantity of grapefruits (G) on the horizontal axis. Make sure your graph is accurate and properly labeled and be sure to clearly indicate which is Craig’s Budget Constraint and which is Craig’s Indifference Curve.
Suppose Craig considers oranges and grapefruits to be perfect substitutes. Craig is willing to trade three (3) oranges for one (1) grapefruit. Craig has $24 to spend on oranges and grapefruits, and the price of oranges is PO = $1.00, and the price of grapefruits is PG = $2.00. On a graph, draw Craig’s Budget Constraint, identify Craig’s optimal bundle, and draw the Indifference Curve that goes through that bundle. Please put the quantity of oranges (O) on the vertical axis, and the quantity of grapefruits (G) on the horizontal axis. Make sure your graph is accurate and properly labeled and be sure to clearly indicate which is Craig’s Budget Constraint and which is Craig’s Indifference Curve.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 6QFR
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I am studying for a midterm and would like help explaining the questions.
Suppose Craig considers oranges and grapefruits to be perfect substitutes. Craig is
willing to trade three (3) oranges for one (1) grapefruit. Craig has $24 to spend on oranges and
grapefruits, and the price of oranges is PO = $1.00, and the price of grapefruits is PG = $2.00. On
a graph, draw Craig’s Budget Constraint, identify Craig’s optimal bundle, and draw the
Indifference Curve that goes through that bundle. Please put the quantity of oranges (O) on
the vertical axis, and the quantity of grapefruits (G) on the horizontal axis. Make sure your
graph is accurate and properly labeled and be sure to clearly indicate which is Craig’s Budget
Constraint and which is Craig’s Indifference Curve.
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