(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
Is he worse off, better off, or equally as well with these new prices and lower income than compared to the original prices and higher income?
(Description)
The following text is briefly written:
d. Is he worse off, better off, or equally as well with these new prices and lower income than compared to the original prices and higher income?
(Speaker)
To start, we're going to label Tyrone's initial level of consumption at 16 meals and 10 notepads. This is point A in our diagram.
(Description)
The coordinate plane with Quantity of notepads as a dependent variable on the y-axis and Quantity of cafeteria as an independent variable on the x-axis is drawn.
The first straight line passing through a point with coordinates, 0 and 50, and a point with coordinates, 20 and 0, is drawn.
The second straight line passing through a point with coordinates, 0 and 90, and a point with coordinates, 20 and 0, is drawn. This line is located above the first line.
Point, A, is plotted on the diagram. It has the coordinates, 10 and 16. It lies on the intersection between the first and the second lines.
A dotted vertical line from 16 meals on the x-axis up to 10 notepads on the y-axis is drawn.
Another dotted horizontal line from 10 notepads on the y-axis to 16 meals on the x-axis is drawn. Both lines intersect at point, A.
The following text is briefly written to the left of the diagram:
Income equals 100 dollars.
Price of cafeteria meals equals 5 dollars, Consumes 16 meals.
Price of notepads equals 2 dollars, Consumes 10 notepads.
(Speaker)
Because this is his optimal level of consumption, his indifference curve is tangent at this point.
(Description)
The first indifference curve is drawn. So that, the first line is a tangent line which touches the first indifference curve at point, A.
(Speaker)
With a lower income, the budget constraint rotates in along the horizontal axis. But the price decrease in notepads allows Tyrone to substitute meals for more notepads.
(Description)
Point, B, with approximate coordinates, 14 and 20, is plotted on the graph. This point lies on the second line.
The second indifference curve is drawn. So that, the second line is a tangent line which touches the second indifference curve at point, B.
The following text is written to the left of the diagram:
Income equals 100 dollars.
Price of cafeteria meals equals 5 dollars.
Price of notepads equals 1 dollars.
(Speaker)
The new indifference curve shows there is some bundle of notepads and meals that leaves Tyrone better off. This is labeled point B in our diagram.