Instructions Answer the following in no more than 200 w

Instructions
Answer the following in no more than 200 words plus diagrams. Use diagrams and try to make sure that they are clearly drawn and labeled. Question
For Kevin cheese and biscuits are perfect complements: he wants to consume exactly
one cube of cheese with each biscuit. Kevin has ?2.40 to spend on cheese and biscuits.
One cube of cheese costs 20 pence and one biscuit costs 10 pence. Draw a diagram with
biscuits on the horizontal axis and cheese on the vertical axis to answer the following
questions:
( 1 ) How many cubes of cheese and how many biscuits will Kevin consume?
( 2 ) Now the price of biscuits rises to 20 pence. How many cubes of cheese and
how many biscuits will Kevin consume now?
( 3 ) In your diagram show the income and substitution effects from this price
increase.
Instructions
Answer the following in no more than 200 words plus diagrams. Use diagrams and try to make sure that they are clearly drawn and labeled. Question
For Kevin cheese and biscuits are perfect complements: he wants to consume exactly
one cube of cheese with each biscuit. Kevin has ?2.40 to spend on cheese and biscuits.
One cube of cheese costs 20 pence and one biscuit costs 10 pence. Draw a diagram with
biscuits on the horizontal axis and cheese on the vertical axis to answer the following
questions:
( 1 ) How many cubes of cheese and how many biscuits will Kevin consume?
( 2 ) Now the price of biscuits rises to 20 pence. How many cubes of cheese and
how many biscuits will Kevin consume now?
( 3 ) In your diagram show the income and substitution effects from this price
increase.
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