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(Figure: Price and Quantity of Skirts I) This Graph Shows

Question 68

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(Figure: Price and Quantity of Skirts I) This graph shows the demand curve for skirts. Suppose the consumer has $500 to spend on skirts and handbags, and the price of handbags remains unchanged at $100. Using budget constraints and indifference curves, placing skirts on the horizontal axis and handbags on the vertical axis, illustrate two of the consumer's optimal consumption bundles of skirts and handbags. (Figure: Price and Quantity of Skirts I) This graph shows the demand curve for skirts. Suppose the consumer has $500 to spend on skirts and handbags, and the price of handbags remains unchanged at $100. Using budget constraints and indifference curves, placing skirts on the horizontal axis and handbags on the vertical axis, illustrate two of the consumer's optimal consumption bundles of skirts and handbags.

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