Janet Chang has to choose between buying more school supplies or more cosmetic products for the week.

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Janet Chang has to choose between buying more school supplies or more cosmetic products for the week. She has a fixed income and she knows the prices of both products. Using indifference curves and budget constraint lines, illustrate the amount of school supplies and cosmetic products that Janet will purchase. When she gets to the store, she finds the price of cosmetic products has fallen dramatically. How does this change his optimal purchase?

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Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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