Figure 21-1 The downwardsloping line on the figure represents a consumer’s budget constraint. Refer to Figure...
Figure 21-1
The downwardsloping line on the figure represents a consumer’s budget constraint.
- Refer to Figure 21-1. If the
consumer’s income is $140, then what is the price of a CD?
- $3
- $5
- $7
- $9
- Refer to Figure 21-1. A
consumer who chooses to spend all of her income could be at which
point(s) on the figure?
- A only
- E only
- B, C, or D only
- A, B, C, or D only
Homework Answers
ANSWER:
1) Price of cd is income / no of cds = 140 / 20 = $7 , so the correct answer is option c.
2) The correct answer is option c as b,c or d only as the consumer who wishes to spend all his income will be on the downwardsloping line.
Add Answer to:
Figure 21-1
The downwardsloping line on the
figure represents a consumer’s budget constraint.
Refer to Figure...
Refer to Figure 21-19. Assume that the consumer depicted in the figure has an income of...
Refer to Figure 21-19. Assume that the consumer depicted in the
figure has an income of $20. The price of Skittles is $2 and the
price of M&M's is $4. The consumer’s optimal choice is point
(Hint: Solve using the budget constraint formula)
A. A
B. B
C. C
D. D
Figure 21-19 Quantity of M&M's 10 8 7 6 B 5 4 11 3 2 1 o 2 3 4 5 6 7 8 9 10 Quantity of Skittles
A consumer’s budget line shows: a. combinations of two goods that are equally satisfying to the...
A consumer’s budget line shows: a. combinations of two goods that are equally satisfying to the consumer b. combination of two goods that the consumer can buy if she spends all of her income on them, given unit prices of the goods c. combination of two goods that a consumer can produce over time as her income increase, given unit prices of the goods d. none of the above
optimal consumption & budget constraint
Q1. A consumer chooses an optimal consumption point where the A) marginal rate of substitution equals the relative price ratio. B) slope of the indifference curve exceeds the slope of the budget constraint C) ratios of all the marginal utilities are equal D) All of the above are correct. Q2. A budget constraint illustrates the A) prices that a consumer chooses to pay for products he consumes. B) consumption bundles that give a consumer equal satisfaction. C) purchases made by consumers. D) consumption bundles that a consumer can afford
The figure to the right shows Jill's budget constraint and her utility maximizing bundle (point R)....
The figure to the right shows Jill's budget constraint and her utility maximizing bundle (point R). What happens to her optimum if her income increases by 25%? 1.) Use the line drawing tool to show the new budget line. Label this line 'L 2.. 2.) Use the point drawing tool to locate a new consumer optimum if good Y is an inferior good. Label this point 'T'. 25- 24- 23- 22- 21- 20- 19- 18- 17- 16- 15- 14- 13-...
Refer to the figure at right. Given the indifference map and budget constraint represented at right,...
Refer to the figure at right. Given the indifference map and budget constraint represented at right, the consumer will maximize utility when she consumes at O A. point A. B. point B. O c. point c. OD. either points A or B. Quantity of Good A per Week Quantity of Good B per Week
budget constraint
When the indifference curve is tangent to the budget constraint,a.indifference curves are likely to intersect.b.a consumer cannot be made better off without an increase in her income or a price decrease in one of the goods she consumes.c.the consumer is likely to be at a sub-optimal level of consumption.d.income is at its optimum for a consumer.
please explain thanks Use the following to answer question 1: Figure: A Changing Budget Constraint for...
please explain thanks
Use the following to answer question 1: Figure: A Changing Budget Constraint for Strawberries and Shortcake Quantity of strawberries BL2 BL1 Quantity of shortcake 1. (Figure: A Changing Budget Constraint for Strawberries and Shortcake) Look at the figure A Changing Budget Constraint for Strawberries and Shortcake. Seb's original budget line is given by BL1 and his original indifference curve is given by 11-Which of the following would have caused his budget line to move to BL2? A)...
1. (24 total points) Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2. Also,...
1. (24 total points) Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2. Also, the consumer has $72 to spend, and the price of Good X, PX = $4. Let Good Y be a composite good whose price is PY = $1. So on the Y-axis, we are graphing the amount of money that the consumer has available to spend on all other goods for any given value of X. a) (2 points) How much X and Y...
Refer to Figure 21-20. Assume that the consumer has an income of $40, the price of...
Refer to Figure 21-20. Assume that the consumer has an income of $40, the price of a bag of marshmallows is $2, and the price of a bag of chocolate chips is $2. The optimizing consumer will choose to purchase which bundle of marshmallows and chocolate chips? a. A b. B. C. C. d. D. 14. Figure 21-18 Refer to Figure 21-18. It would be possible for the consumer to reach I; if a. the price of y decreases. b....
21. A positive income elasticity of demand coefficient indicates that a. a product is an...
21. A positive income elasticity of demand coefficient indicates that a. a product is an inferior good b. two products are substitute goods c. two products are complementary goods d. a product is a normal good 22. All the combinations of two products that will yield the same total utility to a consumer are reflected in a. the budget line b. the marginal rate of substitution c. an indifference curve d. the...
Refer to Figure 21-19. Assume that the consumer depicted in the
figure has an income of $20. The price of Skittles is $2 and the
price of M&M's is $4. The consumer’s optimal choice is point
(Hint: Solve using the budget constraint formula)
A. A
B. B
C. C
D. D
Figure 21-19 Quantity of M&M's 10 8 7 6 B 5 4 11 3 2 1 o 2 3 4 5 6 7 8 9 10 Quantity of Skittles
The figure to the right shows Jill's budget constraint and her utility maximizing bundle (point R). What happens to her optimum if her income increases by 25%? 1.) Use the line drawing tool to show the new budget line. Label this line 'L 2.. 2.) Use the point drawing tool to locate a new consumer optimum if good Y is an inferior good. Label this point 'T'. 25- 24- 23- 22- 21- 20- 19- 18- 17- 16- 15- 14- 13-...
Refer to the figure at right. Given the indifference map and budget constraint represented at right, the consumer will maximize utility when she consumes at O A. point A. B. point B. O c. point c. OD. either points A or B. Quantity of Good A per Week Quantity of Good B per Week
please explain thanks
Use the following to answer question 1: Figure: A Changing Budget Constraint for Strawberries and Shortcake Quantity of strawberries BL2 BL1 Quantity of shortcake 1. (Figure: A Changing Budget Constraint for Strawberries and Shortcake) Look at the figure A Changing Budget Constraint for Strawberries and Shortcake. Seb's original budget line is given by BL1 and his original indifference curve is given by 11-Which of the following would have caused his budget line to move to BL2? A)...
Refer to Figure 21-20. Assume that the consumer has an income of $40, the price of a bag of marshmallows is $2, and the price of a bag of chocolate chips is $2. The optimizing consumer will choose to purchase which bundle of marshmallows and chocolate chips? a. A b. B. C. C. d. D. 14. Figure 21-18 Refer to Figure 21-18. It would be possible for the consumer to reach I; if a. the price of y decreases. b....
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