Ben allocates his lunch budget between two goods pizza and, Microeconomics

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Ben allocates his lunch budget between two goods pizza and

Ben allocates his lunch budget between two goods, pizza and burritos.

a. Illustrate Ben's optimal bundle on a graph with pizza on the horizontal axis.

b. Suppose now that pizza is taxed, causing the price to increase by 20 percent. Illustrate Ben's new opti- mal bundle.

c. Suppose instead that pizza is rationed at a quan- tity less than Ben's desired quantity. Illustrate Ben's new optimal bundle.

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Microeconomics: Ben allocates his lunch budget between two goods pizza and

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Microeconomics: Ben allocates his lunch budget between two goods pizza and

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