(20 Points) Noah is a college student. He is really scraping by. He consumes two goods,...

 

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(20 Points) Noah is a college student. He is really scraping by. He consumes two goods, which he considers to be imperfect substitutes. Mac'n Cheese from a box (M) and yoga lessons (L). The price of a box of Mae'n Cheese is $0.50 and the price per yoga lesson is $1.00. Using his weekly income of $5, Noah consumes five boxes of M and two and a half (2.5) L. Noah's grandma feels sorry for him and sends him a weekly check of $5, so his income is now $10 a week. He now consumes 7 M and 6.5 L. Finally, Noah goes ahead and gets a job, which gets him another $5 in weekly income. At this income he now consumes 4 M and 13 L. For this problem put M on the horizontal axis. (20 Points) Noah is a college student. He is really scraping by. He consumes two goods, which he considers to be imperfect substitutes. Mac'n Cheese from a box (M) and yoga lessons (L). The price of a box of Mae'n Cheese is $0.50 and the price per yoga lesson is $1.00. Using his weekly income of $5, Noah consumes five boxes of M and two and a half (2.5) L. Noah's grandma feels sorry for him and sends him a weekly check of $5, so his income is now $10 a week. He now consumes 7 M and 6.5 L. Finally, Noah goes ahead and gets a job, which gets him another $5 in weekly income. At this income he now consumes 4 M and 13 L. For this problem put M on the horizontal axis.

Answer rating: 100% (QA)

To analyze Noahs consumption we can start by calculating his total expend... View the full answer