What is an indifference curve? Draw an indifference map for bagels and Why are indifference curves shaped this way?

1. What do we mean by a budget constraint? Assuming your income is $72, P records = $6, and the P gas=$2, draw your budget Show what happens when your income drops to $60. Show what happens if P records drops to $3 and your income is $72. Illustrate with graphs.
2. What is an indifference curve? Draw an indifference map for bagels and Why are indifference curves shaped this way?
3. Can indifference curves ever intersect? Why or why not?
4. Using an indifference map and a budget constraint, show at what point a consumer will be at equilibrium. What makes this point so special?
5. What is meant by price elasticity of demand? What importance does this have for a producer when deciding whether or not to change price?

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