Suppose Table 4.2 (page 89) describes Madeline's preference ranking over slices of cheese pizza and scoops of

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Suppose Table 4.2 (page 89) describes Madeline's preference ranking over slices of cheese pizza and scoops of frozen yogurt. Assume her income is $6 per day, pizza costs $2 per slice, and yogurt costs $2 per scoop. Which alternatives in the table are affordable? Which one will she choose? What if yogurt costs $4 per slice? $6 per slice? Each of these choices corresponds to a point on her demand curve for soup; plot them.
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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