Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
2. Jacob receives an allowance of $5 per week. He spends all his allowance on ice cream cones and cans of Lemon Fizz soda.
i. If the price of ice cream cones is $0.50 per cone and the price of Lemon Fizz is $1 per can, draw a diagram showing Jacob’s budget constraint. Be sure to indicate on your diagram the maximum number of ice cream cones and the maximum number of cans of Lemon Fizz that Jacob can buy.
ii. Jacob buys 8 cones and 1 can of Lemon Fizz. Draw an indifference curve representing Jacob’s choice, assuming he has chosen the optimal combination.
iii. Suppose that the price of ice-cream cones rises to $1per cone. Draw in Jacob’s new budget constraint and the new optimal consumption of ice cream cones and lemon fizz.
iv. Suppose that Jacob’s allowance increases from $5 to $10 per week, show (and prices of lemon fizz and ice cream cones are as in i) how the increased allowance alters Jacob’s budget constraint.
v. Using an indifference, show how Jacob’s choice of cones and Lemon Fizz when his allowance increases. Assume both goods are normal.
vi. Using an indifference, show how Jacob’s choice of cones and Lemon Fizz when his allowance increases. Assume that Lemon Fizz is normal but cones are inferior.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more