If the consumer's budget constraint is given by 10F + 5S = 100 where F is...
If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, how much food can he buy if he purchases 4 units of shelter?
A 10
B 8
C 20
D 9
Homework Answers
Answer : The answer is option B.
Given,
10F + 5S = 100
And S = 4 units.
By putting the value of S in budget constraint we get,
10F + (5 * 4) = 100
=> 10F + 20 = 100
=> 10F = 100 - 20 = 80
=> F = 80 / 10
=> F = 8
So, here the consumer buy 8 units of food.
Therefore, option B is correct.
Add Answer to:
If the consumer's budget constraint is given by 10F + 5S = 100
where F is...
If the consumer's budget constraint is given by 10F + 5S = 100 where F is...
If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, what is the opportunity cost of food in terms of shelter? A 5 B 2 C 15 D 20
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(10 Question 1: marks) Given is the Total Utility Function along with Budget Constraint: Utility Function: U (X, Y) = X°.270.3 Budget Constraint: I = XP, + YP, a. What is the consumer's marginal utility for X and for Y? b. Suppose the price of X is equal to 4 and the price of Y equal to 6. What is the utility maximizing proportion of X and Y in his consumption? {construct the budget constraint) c. If the total amount...
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Please explain. Q7: The following figure shows the indifference curves and budget constraint of a consumer....
Please explain.
Q7: The following figure shows the indifference curves and budget constraint of a consumer. De- termine the commodity bundle that will maximize the consumer's satisfaction given his budget. Why is the bundle the optimal choice? Good 1 Budget Constraint 0 1 2 3 4 5 6 7 8 9 10 Good 2
with the given Vatican of P1 P2 and and calculate the optimal values of X:and X2...
with the given Vatican of P1 P2 and and calculate the optimal
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NAME (b) What is the ratio of the price of r to the price of y? 1/2 (c) If you spent all of your income on r, how much + could you buy? 16. (d) If you spent all of your income on y, how much y could you buy? 8 (e) Write a budget equation that gives you this budget line, where the...
Given the following utility function: Where, q1 and q2 are consumer goods and the budget constraint...
Given the following utility function:
Where, q1 and q2 are consumer goods and the budget
constraint is given as.
With p, and p the prices of the goods and the month
the income. Find.
1. The Marshallian Demands for (q1 and 92.
2. The Indirect Utility Function, V (p1, p2, m)
3. The Hicksian Demands for q1 and q2.
4. The Expenditure Function, m (p1, p2, U)
U(992)=9, +10 log2 U(992)=9, +10 log2
Given the change in the budget constraint, which of the following statements are true? (Select all...
Given the change in the budget constraint, which of the
following statements are true? (Select all true
statements.)
Good X is an inferior good.
The demand curve for good X shifted inward.
The demand curve for good X shifted outward.
Good X and good Y are complements.
Units of good Y UBC BC2 1 2 3 4 5 6 7 8 9 10 Units of good X
(Figure: Good Y and Good XI) Given the change in the budget constraint, which of the...
(Figure: Good Y and Good XI) Given the change in the budget constraint, which of the following statements is TRUE? Units of good Y 10 U BC BC2 0 1 2 3 4 5 6 7 8 9 10 Units of good X O Good X is an inferior good. Good X and good Y are complements. The demand curve for good Y has shifted inward. The demand curve for good X has shifted outward.
QUESTION 11 Scenario 1: Tom's budget constraint is given by PxX +PyY = 40, and Px=...
QUESTION 11 Scenario 1: Tom's budget constraint is given by PxX +PyY = 40, and Px= $5, Py = $4. Suppose Tom's utility function is given by the equation U= 2XY, where is the level of utility measured in utils and X and Y refert good X and good Y, respectively. You are also told that the marginal utility of good X can be expressed as MUX = 2Y; and the marginal utility of good Y can be expressed as...
Рx Sketch the following budget constraints: Income S20 $1,000 $40 $50 $1,000 $20 $100 $1,000 $20...
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(10 Question 1: marks) Given is the Total Utility Function along with Budget Constraint: Utility Function: U (X, Y) = X°.270.3 Budget Constraint: I = XP, + YP, a. What is the consumer's marginal utility for X and for Y? b. Suppose the price of X is equal to 4 and the price of Y equal to 6. What is the utility maximizing proportion of X and Y in his consumption? {construct the budget constraint) c. If the total amount...
Please explain.
Q7: The following figure shows the indifference curves and budget constraint of a consumer. De- termine the commodity bundle that will maximize the consumer's satisfaction given his budget. Why is the bundle the optimal choice? Good 1 Budget Constraint 0 1 2 3 4 5 6 7 8 9 10 Good 2
with the given Vatican of P1 P2 and and calculate the optimal
values of X:and X2
NAME (b) What is the ratio of the price of r to the price of y? 1/2 (c) If you spent all of your income on r, how much + could you buy? 16. (d) If you spent all of your income on y, how much y could you buy? 8 (e) Write a budget equation that gives you this budget line, where the...
Given the following utility function:
Where, q1 and q2 are consumer goods and the budget
constraint is given as.
With p, and p the prices of the goods and the month
the income. Find.
1. The Marshallian Demands for (q1 and 92.
2. The Indirect Utility Function, V (p1, p2, m)
3. The Hicksian Demands for q1 and q2.
4. The Expenditure Function, m (p1, p2, U)
U(992)=9, +10 log2 U(992)=9, +10 log2
Given the change in the budget constraint, which of the
following statements are true? (Select all true
statements.)
Good X is an inferior good.
The demand curve for good X shifted inward.
The demand curve for good X shifted outward.
Good X and good Y are complements.
Units of good Y UBC BC2 1 2 3 4 5 6 7 8 9 10 Units of good X
(Figure: Good Y and Good XI) Given the change in the budget constraint, which of the following statements is TRUE? Units of good Y 10 U BC BC2 0 1 2 3 4 5 6 7 8 9 10 Units of good X O Good X is an inferior good. Good X and good Y are complements. The demand curve for good Y has shifted inward. The demand curve for good X has shifted outward.
QUESTION 11 Scenario 1: Tom's budget constraint is given by PxX +PyY = 40, and Px= $5, Py = $4. Suppose Tom's utility function is given by the equation U= 2XY, where is the level of utility measured in utils and X and Y refert good X and good Y, respectively. You are also told that the marginal utility of good X can be expressed as MUX = 2Y; and the marginal utility of good Y can be expressed as...
Рx Sketch the following budget constraints: Income S20 $1,000 $40 $50 $1,000 $20 $100 $1,000 $20 $50 $2,000 $0.25 $0.25 $7.00 $0.251 $0.50 $7.00 $0.50 $0.25 $7.00 HINT: a. For these problems, graphing is as simple as determining how much of each good X and Y you can buy by dividing your income by the price of each. For a., you can buy 50 of good X because income/Px $1000/20 = 50. Along the same lines you can buy $1000...
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