A Consumer Has $100 of Income to Spend on Books

question 52

Essay

A consumer has $100 of income to spend on books and other goods (a composite good).Books cost $20 each and the consumer's optimal bundle is to consume purchase three books while spending the rest of the income on the composite good.The consumer is then given a gift of a book.Assume the consumer is unable to sell the book.Use two separate graphs to demonstrate each of the two possible scenarios:
i.A consumer that is indifferent between the book gift and a cash gift of $20.
ii.A consumer that strictly prefers a $20 cash gift to a book.
To get full credit,accompany each graph with a brief explanation and draw your graphs clearly and well labeled.

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Definitions:

OrderDate Values

Data representing the dates when orders were placed, typically used in databases or spreadsheets.

Criteria

Standards or conditions that are used for judging, filtering, or selecting data in various contexts, such as database querying or research evaluation.

Outer Join

A type of SQL join that returns all rows from one table and matches rows from another table, including rows with no direct match, thereby including all rows from both tables.

Relationships Window

In database applications like Microsoft Access, the relationships window is a graphical interface that displays the database tables and the relationships (links) between them, allowing users to manage how data in different tables is connected.