Question

Consider a hypothetical consumer named Hayden who is shopping for bread and brie. The graph with bread and brie on the axes presents the utility‑maximizing combinations of bread and brie that Hayden chooses when the price of bread is $1.00 per loaf and the price of brie is $4.00 and $6.00 per wheel, respectively. The other graph shows Hayden's demand curve for brie.
The two points and associated values in the graph for bread and brie combinations correspond to points A and B in the graph of the demand curve for brie. What are the specific prices and quantities of brie associated with points A and B on Hayden's demand curve?

Answer 1

The graphical relationship of the demand and price of brie are given in the two graphs

• At point A, the price is $4.00 and the quantity demanded is 23.84

• At point A, the price is $6.00 and the quantity demanded is 7.49

Reason:

The given parameters are;

The graphs gives the utility-maximizing combinations of bread and brie chosen by Hayden

The price of the loaf = $1.00

The prices of the brie are $4.00 and $6.00 per wheel

Given that as the price increases from $4.00 to $6.00, the quantity

demanded increases, we have;

When the price is $4.00, the quantity of brie demanded 23.84 brie wheels,

and the quantity of bread demanded is 15.9 bread loaves

When the price increases to $6.00, the quantity of brie demanded

decreases to 7.49 brie wheels, while the quantity of bread demanded

increases to 25.2 loaves

Therefore; we have;

At point A, the price is $4.00 and the quantity demanded is 23.84

At point B, the price is $6.00 and the quantity demanded is 7.49

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