In a small South American country, a typical senior citizen buys 50 avocados each year at the going price of $1.00 per avocado. 2a) On an appropriate graph, show the typical senior citizen's budget line, their optimal bundle, and the associated indifference curve on the graph. 2b) Because of a change in import-export policy, the price of avocados has increased to $2.00. Add the new typical senior citizen's budget line to the graph from part a. Will they still buy the same bundle from part a? Why or why not

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Answer 2a Graph with Budget Line Optimal Bundle and Indifference Curve Assumptions The graph uses Avocados quantity on the Xaxis and Total Expenditure ... View the full answer