Microeconomics 19th Edition by Campbell McConnell,Stanley Brue,Sean Flynn

Exercise 1

Assume that the data in the accompanying table give an indifference curve for Mr. Chen. Graph this curve , putting A on the vertical axis and B on the horizontal axis. Assuming that the prices of A and B are $1.50 and $1, respectively, and that Mr. Chen has $24 to spend, add his budget line to your graph. What: combination of A and B will Mr. Chen purchase? Does your answer meet the MRS = P B / P A rule for equilibrium?