Question: 10. Deriving demand from an indifference map Eileen recently moved to San Diego, where they developed a taste for drinking Americanos and eating danishes. Assume

10. Deriving demand from an indifference map Eileen recently moved to San Diego, where they developed a taste for drinking Americanos and eating danishes. Assume throughout this problem that the price of an Americano is held constant at $2. On the following graph, the purple curves (I1 and I2 ) describe two of Eileen's indifference curves. The lines BC1 and BC2 represent two budget constraints. Points X and Y show Eileen's optimal consumption bundles subject to the budget constraints. 0 2 4 6 8 10 12 14 16 18 20 20 18 16 14 12 10 8 6 4 2 0 AMERICANOS DANISHES I 1 BC 1 I 2 BC 2 X Y Given the preceding graph and knowing the price of an Americano is $2, Eileen's available income for Americanos and danishes is $40 . Using the income amount you just computed, complete the following table by finding the price of a danish when BC1 represents Eileen's budget constraint and when BC2 represents her budget constraint. Then indicate the quantity of danishes consumed in each of those scenarios. When Eileen's budget constraint is... Price Consumption (Dollars per danish) (Danishes) BC1 4 12 BC2 2 18 Given the price-quantity combinations

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