Answer to Question #54180 in Economics of Enterprise for lila
a. Assuming she has $1000 a month to spend on rent and utilities, draw her budget constraint and a couple of her indifference curves. Show her equilibrium and calculate how many square feet of apartment space and kwh of electricity she consumes.
b. Now suppose she gets a promotion and can afford to spend $1500 on rent and utilities. Show her new equilibrium and calculate her consumption of each good.
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