Answer the following questions based on the table.A consumer is able to consume the following bundles of rice and beans when the price of rice is $2 and the price of beans is $3.
a.How much is this consumer's income?
b.Draw a budget constraint given this information.Label it B.
c.Construct a new budget constraint showing the change if the price of rice falls $1.Label this C.
d.Given the original prices for rice ($2)and beans ($3),construct a new budget constraint if this consumer's income increased to $48.Label this D.
Definitions:
Total Cost
The complete expenditure incurred by a firm in the production of goods or services, including both fixed and variable costs.
Product Demand
The desire and willingness of consumers to purchase a specific quantity of a good or service at a given price.
Price Elasticity
An estimation of the change in demanded quantity of a product in response to its price movements, signifying how prone consumers are to price changes.
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