Given the following information, describe the budget line for the consumer. Be sure to label the axis and provide a number for the vertical and horizontal intercepts. State the slope and its meaning.
Income =$1000/ month
Price of 1 pound of steak = $4.00
Price of 1 pound of potatoes = $0.50
Now, overlay several indifference curves onto the picture. What are these curves? What is their shape? How can you find the utility-maximaiztion point?© BrainMass Inc. brainmass.com June 3, 2020, 9:45 pm ad1c9bdddf
Please see the attached file for the full solution.
If x represents the pounds of steak and y represents the pounds of potatoes, then the budget line is given as:
4x + 0.5y = ...
This solution describes the budget line for a consumer and overlays several indifference curves on the line.