CENGAGE MINDTAP [GRADED] Homework [22] Back to Assignment Attempts Keep the Highest / 3 10. Deriving demand from an indifference map Frances 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 $3. On the following graph, the purple curves (1, and Jo) describe two of Frances's indifference curves. The lines BC, and BC2 represent two budget constraints. Points X and Y show Frances's optimal consumption bundles subject to the budget constraints. ? AMERICANOS o 12 14 16 DANISHES Given the preceding graph and knowing the price of an Americano is $3, Frances's available income for Americanos and danishes is Using the income amount you just computed, complete the following table by finding the price of a danish when BC represents Frances's budget constraint and when BC2 represents her budget constraint. Then indicate the quantity of danishes consumed in each of those scenarios. Price Consumption When Frances's budget constraint is... (Dollars per danish) "Danishes) BC BC Given the price-quantity combinations from the preceding table, use the blue line (circle symbol) to plot Frances's demand for danishes on the following graph. Hint: Assume that Frances's demand for danishes is a straight line. You should derive two points on the demand curve from the preceding graph. Then place the blue line on the following graph so that it passes through these two points ? Demand PRICE (Dollars per danish) N 12 14 16 18 20 QUANTITY (Danishes) Grade It Now Save & Continue Continue without saving