MGEB02H3 Study Guide - Midterm Guide: University Of Toronto Scarborough, Composite Good, Indifference Curve
16 Oct 2018
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Question-1 [30 points] answer the following short questions: [6 points] you are analyzing the market for hot chocolate. Sketch a basic supply and demand diagram, and state the impact on the equilibrium price and quantity of each of the following events affecting the market: an abnormally cold winter: Demand shifts right, p & q increase: a reduction in the price of coffee beans: Page 2 of 2: [6 points] jack loves crancream drink, which he makes by combining one glass of cranberry juice and two scoops of ice cream. Julie is on a special diet that assigns points to food and drinks. One glass of cranberry is one point and one scoop of ice cream is one point. Show his indifference curves on the following graph. Show her indifference curve on the following graph. Page 3 of 3: [6 points] assume you have a fixed budget of . Further assume that you spend your entire budget.
