How would you draw graphs used to answer optimal consumption bundle questions in economics?enter image description here

  • 1
    Hello and welcome on TeX-SE. This kind of design is pretty common and you will find a bunch of examples to help you start. Come back with a specific question about what you struggled with, a Minimal Working Example of what you wrote already and you'll get some help, for sure.
    – SebGlav
    Jul 27 at 9:33

Something to start with, nothing fancy, just some try and error to draw the slope line. There are many ways to make a more customizable design but maybe that's not what you need yet.

economics graph


        \draw[thick,<->] (0,5) node[left]{$B$} |- (5,0) node[below]{$A$};
        \draw[thick,blue] (0.3,5) to[bend right=40] node[pos=0.6,circle,inner sep=1pt,fill=black] (P){} (5,0.3) ;
        \coordinate (O) at (0,0);
        \draw[densely dashed] (P-|O) node[left]{$B^\star$} -| (P|-O);
        \draw (P) --++ (142:2.9) node[left]{$\dfrac{I}{P_B}$};
        \draw (P) --++ (-38:2.1) node[below]{$\dfrac{I}{P_A}$};
        \draw[<-] (P) --++ (0.7,1.5) node[above]{\footnotesize Optimal bundle: $\dfrac{MU_A}{MU_B}=\dfrac{P_A}{P_B}$};
  • 1
    Thank you so much!
    – raynerk
    Jul 27 at 22:38

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