Question

QUESTION 1 Anita has $600 per month to spend on electricity and other goods. Price of other goods is one, while price of electricity is 50.2 per kilowatt hour (kwH) for the first 1,000 kwH of power per month and 50.04 for any additional kwH. Select all that applies: O a. For the amount of electricity less than 1,000 kwH per month, the slope of her budget line is-0.1. b. For the amount of electricity less than 1,000 kWH per month, the slope of her budget line is-02. OC. For the amount of electricity more than 1,000 kwH per month, the slope of her budget line is-0.24 O d. A bundle of 5,000 kwH and 240 of other goods is feasible for her. O e. A bundle of 2,000 kwH and 300 of other goods is feasible for her. t. A bundle of 6,000 kwH and 250 of other goods is feasible for her.
0 0
Add a comment Improve this question Transcribed image text
Answer #1

For this "B" and "D" are correct options. Please look attachment file,ilven ce e FDY

Add a comment
Know the answer?
Add Answer to:
QUESTION 1 Anita has $600 per month to spend on electricity and "other goods". Price of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Anita has $600 per month to spend on electricity and "other goods". Price of "other goods"...

    Anita has $600 per month to spend on electricity and "other goods". Price of "other goods" is one, while price of electricity is $0.2 per kilowatt hour (kwH) for the first 1,000 kwH of power per month and $0.04 for any additional kwH. Select all that applies: a. For the amount of electricity less than 1,000 kwH per month, the slope of her budget line is -0.1. b. For the amount of electricity less than 1,000 kwH per month, the...

  • Why the correct options are B and D only, not including C and E? QUESTION 1...

    Why the correct options are B and D only, not including C and E? QUESTION 1 Anita has $600 per month to spend on electricity and "other goods". Price of "other goods" is one, while price of electricity is 50.2 per kilowatt hour (kwH) for the first 1,000 kwH of power per month and 50.04 for any additional kwH. Select all that applies: O a. For the amount of electricity less than 1,000 kwH per month, the slope of her...

  • . A family in Ethiopia has $100 to spend on food and all other goods for...

    . A family in Ethiopia has $100 to spend on food and all other goods for the entire year of 2018. The price of food is $2.00 per kilogram (let’s assume that all food is the same). The price of all other goods is $1.00 per unit. Write the equation for the household’s budget constraint for the year, with income on the left-hand side of the equation. Fill in the following chart so that the quantity purchased on each horizontal...

  • Question 2: A consumer has 100 dollars to spend on two goods, price of a sweater...

    Question 2: A consumer has 100 dollars to spend on two goods, price of a sweater is $ 10 and price of shoes is $ 20. Assume the consumers budget line has shoes on the vertical axis and sweaters on the horizontal axis; a. Determine the slope and the intercept of the budget line b. What will be the effect of the following on the budget line: Increase in price of sweaters Increase in income of consumer If price of...

  • 2. Suppose that Jesse earns $1,000 per month which she allocates between food and other goods....

    2. Suppose that Jesse earns $1,000 per month which she allocates between food and other goods. Assume that the average price of a unit of food is $5 and the price of other goods as $1. Currently, she maximizes her utility by purchasing 25 units of food each month. [5] a. With other goods on the y-axis and food on the x-axis, illustrate Jesse's budget constraint and an indifference curve at her optimal bundle. Label all relevant values. b. In...

  • Suppose Peter has $800,000 to spend on a house and “other goods” (denominated in dollars). The...

    Suppose Peter has $800,000 to spend on a house and “other goods” (denominated in dollars). The price of 1 square foot of housing is $300, and Peter chooses to purchase a house of 2,000 square feet in size. Assume that houses do not differ in quality: their price is solely determined by their size. Also, assume throughout that Peter spends money on housing solely for its consumption value, not as part of his investment strategy, and that Peter has well-behaved,...

  • 1) You make $2,000 a month. You can spend this income on two goods: food, which...

    1) You make $2,000 a month. You can spend this income on two goods: food, which costs $10 a unit; and "all other goods" which costs $5 a unit. a) Draw your budget constraint for a given month in a graph. Be sure to label all relevant points (y-intercept, x-intercept and slope) on the graph with their values. b) Shade in the area that you could possibly choose given your budget. Write a few sentences explaining why that area is...

  • Suppose a consumer has budget of $120 per week to spend on food. Consumer can choose...

    Suppose a consumer has budget of $120 per week to spend on food. Consumer can choose to eat at restaurants (R), in which case he spends about $20 per meal (P $20), or spend his money on All-Other-Food (PAOP $1) 2. a. Ilustrate consumer's budget line. Plot R on the horizontal axis. b. If consumer's utility function is U-R AOF, what will be his optimal bundle? What would be the value of his utility at optimal bundle? How much money...

  • 1. Suppose the price of a taco is $1 and the price of a soft drink...

    1. Suppose the price of a taco is $1 and the price of a soft drink is $2. If Mehmet has $5, then he can buy: A) four tacos and two soft drinks B) three tacos and two soft drinks C) four tacos and one soft drink D) three tacos and one soft drink 2. Tena has $50 per week to spend on lunches. Egg rolls cost $2 each and a plate of chow mein costs $7. Tena wants to...

  • Assume that Jean has an annual income of $50,000, and she spends her income on milk...

    Assume that Jean has an annual income of $50,000, and she spends her income on milk (X) and all other goods (AOG) (Y). The price of milk is $2, and the price of AOG is $1/unit. Her preferences can be represented by convex indifference curves. a. (4 pts) Illustrate her optimal choice (X*,Y*) on a graph, using indifference curve-budget line analysis. (Note: you do not have enough information to have numerical answers for X* and Y*). b. (11 pts) In...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT