Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 2

Assume that the data in the accompanying table indicate an indifference curve for Mr. Chen. Graph this curve, putting A on the vertical and B on the horizontal axis. Assuming the prices of A and B are $1.50 and $1.00, 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