Homework Answers
Add Answer to:
4. Suppose a consumer has a budget of S500 to spend on goods X and Z...
Need help with this practice problem 2. (20 points) Suppose a consumer has $250 to spend...
Need help with this practice problem
2. (20 points) Suppose a consumer has $250 to spend on two goods, Good X and Good Y. The price of Good X is given by Py = $10. The price of Good Y is given by Py = $25. Graph the consumer's budget constraint. Please put the quantity of Good X on the horizontal axis, and the quantity of Good Y on the vertical axis. Be sure to label your graph carefully and...
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...
. 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...
Originally the consumer faces the budget line p1x1 + p2x2 = w. Then the price of...
Originally the consumer faces the budget line p1x1 + p2x2 = w. Then the price of good 1 doubles, the price of good 2 becomes 8 times larger, and wealth becomes 4 times larger. a. Write down an equation for the new budget line in terms of the original prices and wealth. b. Draw each budget constraint on a separate graph. Then label the vertical intercept, horizontal intercept and the slope of each line in terms of the original prices...
2. Suppose that a consumer has income of $12 to spend on and r2. Also suppose...
2. Suppose that a consumer has income of $12 to spend on and r2. Also suppose that the price of 띠 is $2 per unit and the price of x2 is $1 per unit. You will be asked to draw the three budget line in one diagram. Please label each (as (a), (b) and (c) carefully (a) Draw the consumer's budget line on a diagram where a is on the horizontal axis and r2 is on the vertical axis. the...
4. In a two-good world, suppose a consumer views the goods as perfect substitutes. Draw a...
4. In a two-good world, suppose a consumer views the goods as perfect substitutes. Draw a graph of the consumer's choice problem, with a budget constraint and a few indifference curves. (Assume the slope of the indifference curves is different from the slope of the budget constraint.) What is notable about the consumer's preferred bundle?
4. In a two-good world, suppose a consumer views the goods as perfect substitutes. Draw a graph of the consumer's choice problem, with a budget...
Suppose that a consumer has $200 to spend per month. Assume that the price of a...
Suppose that a consumer has $200 to spend per month. Assume that the price of a unit of a household product is $5. For each of the following scenarios, draw the consumerís budget constraint by plotting all else on the y-axis and household products on the x-axis. (a) For every $100 she spends on household products she gets $10 back which she can spend on anything. (b) Suppose that once the consumer purchases 10 household products, each additional household product...
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...
Question #1: Budget Constraint [18 Points) Suppose that Tiffany has an income of $20 per week...
Question #1: Budget Constraint [18 Points) Suppose that Tiffany has an income of $20 per week and she spends it on frozen pizza (P) and beer (B). The price of a bottle of beer (Pg) is $1 and the price of frozen pizza (P) is $5 per pizza. (a) Derive an equation for the budget constraint. [4 Points] (b) Draw the budget constraint with beer on the horizontal axis and pizza on the vertical axis. Clearly indicate the x and...
1. John has $400 to spend on goods H and Z. The market prices of these...
1. John has $400 to spend on goods H and Z. The market prices of these two goods are PH = 10 and PZ = 20. a. what is the market rate of substitution between goods H and Z? b. Illustrate the consumer's opportunity set in a carefully labeled diagram. Place H on the vertical axis. c. Show how the consumer's opportunity set changes if income increases by $200. How does the $200 increase in income alter the market rate...
Need help with this practice problem
2. (20 points) Suppose a consumer has $250 to spend on two goods, Good X and Good Y. The price of Good X is given by Py = $10. The price of Good Y is given by Py = $25. Graph the consumer's budget constraint. Please put the quantity of Good X on the horizontal axis, and the quantity of Good Y on the vertical axis. Be sure to label your graph carefully and...
2. Suppose that a consumer has income of $12 to spend on and r2. Also suppose that the price of 띠 is $2 per unit and the price of x2 is $1 per unit. You will be asked to draw the three budget line in one diagram. Please label each (as (a), (b) and (c) carefully (a) Draw the consumer's budget line on a diagram where a is on the horizontal axis and r2 is on the vertical axis. the...
4. In a two-good world, suppose a consumer views the goods as perfect substitutes. Draw a graph of the consumer's choice problem, with a budget constraint and a few indifference curves. (Assume the slope of the indifference curves is different from the slope of the budget constraint.) What is notable about the consumer's preferred bundle?
4. In a two-good world, suppose a consumer views the goods as perfect substitutes. Draw a graph of the consumer's choice problem, with a budget...
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...
Question #1: Budget Constraint [18 Points) Suppose that Tiffany has an income of $20 per week and she spends it on frozen pizza (P) and beer (B). The price of a bottle of beer (Pg) is $1 and the price of frozen pizza (P) is $5 per pizza. (a) Derive an equation for the budget constraint. [4 Points] (b) Draw the budget constraint with beer on the horizontal axis and pizza on the vertical axis. Clearly indicate the x and...
Most questions answered within 3 hours.
-
Which of the following best describes transferred-in costs?
A) they are the cost of transferring products...
asked 2 minutes ago -
Programming in C:
Write a program that accepts an integer and two floating-point
values (All three...
asked 5 minutes ago -
In hypothesis testing, it is easier to reject H0 with
a ______________
directional test (one tail)...
asked 21 minutes ago -
Requirements:
For this exercise you are to implement a small bioinformatics
library for operations with DNA...
asked 12 minutes ago -
The stockholders’ equity section of Concord Corporation’s
balance sheet at December 31 is presented here.
CONCORD...
asked 15 minutes ago -
many biochemical dissolve in the aqueous media of the cell. What
does this imply about the...
asked 23 minutes ago -
Explain how to uphold conditions relating to the work environment,
equipment, materials, procedures and special requirements
asked 21 minutes ago -
The probability of a manufacturing defect in an aluminum
beverage can is .00008 if 100,600 cans...
asked 25 minutes ago -
Which aqueous solution below is most acidic?
a. pH= 3.00
c. [-OH]= 2 x 10^-3
b....
asked 47 minutes ago -
There are four (4) major financial statements: Income Statement,
Retained Earning (Owner's Equity) Statement, Balance Sheet,...
asked 53 minutes ago -
A) Banana, Inc. has a book value per share of $8.70, earnings
per share of $1.68,...
asked 54 minutes ago -
a.)Suppose you were
preparing 1.0 L of a bleaching solution in a volumetric flask, and
it...
asked 1 hour ago