1. The gragh below shows indifference curves $(I C_{1}$ and $I C_{2})$ and budget constraints $(B_{1}$ , $BC_{2}, BC_{3}$ ) for Sam who enjoys consuming tacos with soda. (6 points) a. Based on the Budget Constraint $BC_{2}$ , if Sam's budget is $$28$ then what would be the the prices of soda and/or taco? b. What combination of tacos and soda quantities optimizes Sam's utility?

Question

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1. The gragh below shows indifference curves

(I C_{1}

and

I C_{2})

and budget constraints

(B_{1}

,

BC_{2}, BC_{3}

) for Sam who enjoys consuming tacos with soda. (6 points) a. Based on the Budget Constraint

BC_{2}

, if Sam's budget is

$28

then what would be the the prices of soda and/or taco? b. What combination of tacos and soda quantities optimizes Sam's utility?

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Expert Answer to -      1. The gragh below shows indifference curves (IC1 and IC2) and budget constraints (B1,

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Solution for -      1. The gragh below shows indifference curves (IC1 and IC2) and budget constraints (B1,

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(Solved): 1. The gragh below shows indifference curves (IC1 and IC2) and budget constraints (B1, ...