3. Jacob receives an allowance of $5 per week. He spends all his allowance on ice...
3. Jacob receives an allowance of $5 per week. He spends all his allowance on ice cream cones and cans of Lemon Fizz soda. If the price of ice cream cones is $0.50 per cone and the price of cans of Lemon Fizz soda is $1 per can, draw a graph showing Jacob’s budget constraint. Be sure to indicate on the graph the maximum number of ice cream cones and the maximum number of cans of Lemon Fizz that Jacob can buy. Jacob buys 8 ice cream cones and 1 can of Lemon Fizz. Draw an indifference curve representing Jacob’s choice, assuming that he has chosen the optimal combination. Suppose that the price of ice cream cones rises to $1 per cone. Draw Jacob’s new budget constraint and a new potential optimal consumption (with a new indifference curve) of ice cream cones and cans of Lemon Fizz.
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3. Jacob receives an allowance of $5 per week. He
spends all his allowance on ice...
Yogurt (cartons per day) Pam has $10 a day to spend on yogurt and ice cream....
Yogurt (cartons per day) Pam has $10 a day to spend on yogurt and ice cream. The price of a carton of yogurt is $2.00 and the price of an ice cream cone is $1.00 Draw Pam's budget line and label it. When Pam is on her budget line and she is consuming 4 ice cream cones, the maximum number of cartons of yogurt she can also afford is 10 Ice cream (cones per day) >>> Draw only the objects...
Number of ice cream cones B Total Utility from ice cream cones C Marginal Utility from...
Number of ice cream cones B Total Utility from ice cream cones C Marginal Utility from last cone E Number of cans of D Marginal Utility per price M0 . P ps 3.00 Total Utility from Coca Cola G Marginal Utility from last Coca Cola H Marginal Utility per price M.U. Cola Marginal Utility per price MU. Po P $2.00 P P-$1.00 0 36 40 94 90 102 114 105 105 Assume that the price of Ice Cream Cones is...
2. Todd earns $100/week, and spends all of his money on coffee and pizza. Coffee costs...
2. Todd earns $100/week, and spends all of his money on coffee and pizza. Coffee costs $5/cup and pizza costs $3/slice. He initially consumes 8 cups of coffee and 20 slices of pizza per week. a) Draw Todd's budget constraint and the indifference curve on which he is currently consuming b) the cost of coffee decreases to 2.50/ cup and pizza increases in price to $4/slice. Draw Todd's new budget constraint c) Is Todd better off or worse off? Explain.
Thor Odinson has really let himself go. He spends all of his income only consuming whole...
Thor Odinson has really let himself go. He spends all of his income only consuming whole pies of pizza () and cases of beer (b), priced at p. 5 and p = 15, respectively. Suppose Thor's utility funetion is given by u(3,0) = 2'and his income is I = 300. (8 points total) (a) Salve for Thor's optimal bundle of pizza pies (?) and cases of beer (b). (2 points) (1) Draw Thor's budget constraint, optimal bundle, and indifference curve...
Thor Odinson has really let himself go. He spends all of his income only consuming whole...
Thor Odinson has really let himself go. He spends all of his income only consuming whole pies of pizza (2) and cases of beer (b), priced at p: = 5 and p = 15, respectively. Suppose Thor's utility function is given by u(2,5) = 36 and his income is I = 300. (8 points total) (a) Solve for Thor's optimal bundle of pizza pies (2) and cases of beer (b). (2 points) (b) Draw Thor's budget constraint, optimal bundle, and...
Suppose a family spends their income on two things: education (S) and all other goods, (X)....
Suppose a family spends their income on two things: education (S) and all other goods, (X). The family earns $60,000 a year. A unit of education costs $10,000 and a unit of other goods costs $15,000. a) Write the equation for the family’s budget constraint. b) Draw the family’s budget constraint. Put education spending on the x-axis and spending on all other goods on the y-axis. c) The local government opens a public school, which offers $20,000 worth of education...
l. A consumer has €100 of income to allocate between chocolate and soda. Chocolate costs per...
l. A consumer has €100 of income to allocate between chocolate and soda. Chocolate costs per unit. (a) Suppose when soda costs 4 per unit, the consumer chooses 20 sodas. Draw the budget constraint and indifference curve to represent this budget and choice. (You can assume that the indifferences curves are regular, ie convex to the origin.) Now the company introduces a deal whereby the price falls to є3.00 if the consumer buys more than 20 sodas. So if the...
Thor Odinson has really let himself go. He spends all of his income only consuming whole...
Thor Odinson has really let himself go. He spends all of his income only consuming whole pies of pizza (2) and cases of beer (b), priced at p. = 5 and p = 15, respectively. Suppose Thor's utility function is given by u( 2, b) = 2?? and his income is I = 300. (8 points total) (a) Solve for Thor's optimal bundle of pizza pies (2) and cases of beer (b). (2 points) (b) Draw Thor's budget constraint, optimal...
Nathaniel has an income of $100 per week, which he spends on medicine and all other...
Nathaniel has an income of $100 per week, which he spends on medicine and all other goods. Assume his medicine costs $10 for each pill. Suppose the government agrees to pay half of Nathaniel’s medicine bill, so that his pills effectively cost him only $5 each. As a result, he chooses to buy 80 pills. Graphically show how the government program affects Nathaniel’s budget constraint and show his new optimal consumption bundle (labeled P*). Suppose the government ends the old...
2. Ali has a $7 weekly budget that he spends on songs (S, SI per download)...
2. Ali has a $7 weekly budget that he spends on songs (S, SI per download) and prosein bars (B, S1 per bar). His usility information for the two products is below from songsof a song y fTotal utiliay Marginal wtilityQuantity ofTotal utility Marginal utility of a bar from bars protein bars 10 18 14 18 21 28 30 31 a) Calculate Ali's marginal utilities and finish the filling out the table b) If Ali spends his entire budget on...
Yogurt (cartons per day) Pam has $10 a day to spend on yogurt and ice cream. The price of a carton of yogurt is $2.00 and the price of an ice cream cone is $1.00 Draw Pam's budget line and label it. When Pam is on her budget line and she is consuming 4 ice cream cones, the maximum number of cartons of yogurt she can also afford is 10 Ice cream (cones per day) >>> Draw only the objects...
Number of ice cream cones B Total Utility from ice cream cones C Marginal Utility from last cone E Number of cans of D Marginal Utility per price M0 . P ps 3.00 Total Utility from Coca Cola G Marginal Utility from last Coca Cola H Marginal Utility per price M.U. Cola Marginal Utility per price MU. Po P $2.00 P P-$1.00 0 36 40 94 90 102 114 105 105 Assume that the price of Ice Cream Cones is...
2. Todd earns $100/week, and spends all of his money on coffee and pizza. Coffee costs $5/cup and pizza costs $3/slice. He initially consumes 8 cups of coffee and 20 slices of pizza per week. a) Draw Todd's budget constraint and the indifference curve on which he is currently consuming b) the cost of coffee decreases to 2.50/ cup and pizza increases in price to $4/slice. Draw Todd's new budget constraint c) Is Todd better off or worse off? Explain.
Thor Odinson has really let himself go. He spends all of his income only consuming whole pies of pizza () and cases of beer (b), priced at p. 5 and p = 15, respectively. Suppose Thor's utility funetion is given by u(3,0) = 2'and his income is I = 300. (8 points total) (a) Salve for Thor's optimal bundle of pizza pies (?) and cases of beer (b). (2 points) (1) Draw Thor's budget constraint, optimal bundle, and indifference curve...
Thor Odinson has really let himself go. He spends all of his income only consuming whole pies of pizza (2) and cases of beer (b), priced at p: = 5 and p = 15, respectively. Suppose Thor's utility function is given by u(2,5) = 36 and his income is I = 300. (8 points total) (a) Solve for Thor's optimal bundle of pizza pies (2) and cases of beer (b). (2 points) (b) Draw Thor's budget constraint, optimal bundle, and...
l. A consumer has €100 of income to allocate between chocolate and soda. Chocolate costs per unit. (a) Suppose when soda costs 4 per unit, the consumer chooses 20 sodas. Draw the budget constraint and indifference curve to represent this budget and choice. (You can assume that the indifferences curves are regular, ie convex to the origin.) Now the company introduces a deal whereby the price falls to є3.00 if the consumer buys more than 20 sodas. So if the...
Thor Odinson has really let himself go. He spends all of his income only consuming whole pies of pizza (2) and cases of beer (b), priced at p. = 5 and p = 15, respectively. Suppose Thor's utility function is given by u( 2, b) = 2?? and his income is I = 300. (8 points total) (a) Solve for Thor's optimal bundle of pizza pies (2) and cases of beer (b). (2 points) (b) Draw Thor's budget constraint, optimal...
2. Ali has a $7 weekly budget that he spends on songs (S, SI per download) and prosein bars (B, S1 per bar). His usility information for the two products is below from songsof a song y fTotal utiliay Marginal wtilityQuantity ofTotal utility Marginal utility of a bar from bars protein bars 10 18 14 18 21 28 30 31 a) Calculate Ali's marginal utilities and finish the filling out the table b) If Ali spends his entire budget on...
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