For any question below that asks you to draw something, please ensure that you attach the...

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For any question below that asks you to draw something, please ensure that you attach the graph as an answer to this problem. D2L has just released the ability for you to attach things directly to a question, so you do not have to email them to me. Click on the button in the upper left corner that looks like a "play" symbol. It allows you to insert things. This is a long problem, so please ensure you complete each part in order to get the total 10 points. This is almost 50% of all points for this problem set, so do not skip this question. A college student has two options for eating. He can eat in the campus dining room for $4 per meal or eat Ramen Noodles and a sandwich for $2 per meal. His weekly food budget is $96. (a) Draw the budget constraint showing the trade-off between the two eating options. Draw an indifference curve that assumes that he spends equal amounts on the two goods (split the money evenly). Label the optimum point A. (b) Suppose the cost of eating the Ramen noodles and sandwich rises to $3. Use your diagram from part (a) to show the consequences of the price change. If the student decreases his consumption of dining hall meals to $24. locate the new optimum point. Label it B. (c) As a result of the price change of noodles and a sandwich, what happened to the (c) As a result of the price change of noodles and a sandwich, what happened to the quantity consumed? (d) What does this result say about the income and substitution effects? (Which effect is stronger in this situation?) (e) Use points A and B to create a demand curve for the Ramen noodles meal. What's different about this demand curve? What is this type of good called? Y Format Y BIU 27 ⠀ EQ/.. For any question below that asks you to draw something, please ensure that you attach the graph as an answer to this problem. D2L has just released the ability for you to attach things directly to a question, so you do not have to email them to me. Click on the button in the upper left corner that looks like a "play" symbol. It allows you to insert things. This is a long problem, so please ensure you complete each part in order to get the total 10 points. This is almost 50% of all points for this problem set, so do not skip this question. A college student has two options for eating. He can eat in the campus dining room for $4 per meal or eat Ramen Noodles and a sandwich for $2 per meal. His weekly food budget is $96. (a) Draw the budget constraint showing the trade-off between the two eating options. Draw an indifference curve that assumes that he spends equal amounts on the two goods (split the money evenly). Label the optimum point A. (b) Suppose the cost of eating the Ramen noodles and sandwich rises to $3. Use your diagram from part (a) to show the consequences of the price change. If the student decreases his consumption of dining hall meals to $24. locate the new optimum point. Label it B. (c) As a result of the price change of noodles and a sandwich, what happened to the (c) As a result of the price change of noodles and a sandwich, what happened to the quantity consumed? (d) What does this result say about the income and substitution effects? (Which effect is stronger in this situation?) (e) Use points A and B to create a demand curve for the Ramen noodles meal. What's different about this demand curve? What is this type of good called? Y Format Y BIU 27 ⠀ EQ/..

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a The budget constraint shows the tradeoff between the two eating options The budget constraint is a ... View the full answer