ZuoTi.Pro
Question

Question 1 Jane allocates a budget of $120 a week to purchase either fruits or vegetables....

Question 1

Jane allocates a budget of $120 a week to purchase either fruits or vegetables. When she eats no vegetables, she consumes 60 cups of fruits. When she eats no fruits, she consumes 40 units of vegetables. Assume that price per cup of fruit is $2 and price per unit of vegetable is $3. Jane reports that she consumed 30 units of vegetables and 20 cups of fruits last week. When she made her consumption choice last week, her marginal rate of substitution of vegetables for fruits was −2/3

a) Draw the budget line and illustrate where Jane’s indifference curve intersects the budget line.

b) Do you find a corner solution in Jane’s case? Explain why or why not.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Question 1 Jane allocates a budget of $120 a week to purchase either fruits or vegetables....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • Jane commutes to work. She can either use public transport or her own car. Her indifference curve...

    Jane commutes to work. She can either use public transport or her own car. Her indifference curves obey the four properties of indifference curves for ordinary goods 1. Draw Jane's budget line (BL,) with car travel on the vertical axis and public transport on the horizontal axis 2. Suppose that Jane consumes some of both goods. Explain how her optimal consumption bundle can be obtained. Then, draw an indifference curve that helps you illustrate that optimal consumption bundle represented by...

  • The budget equation 2X + 3Y = 12 suggests that price per unit of Good X...

    The budget equation 2X + 3Y = 12 suggests that price per unit of Good X = $2, price per unit of Good Y = $3 and total income, I = $12. a) Use your mathematical calculation to determine the end-points of the budget equation. and illustrate the budget line in a clearly labeled diagram. b) Suppose that consumer maximizes her consumption by consuming 3 units of Good X and 2 units of Good Y. Illustrate where the indifference curve...

  • Lydia S. is a 42-year-old British woman who recently moved to the United States. She smokes a half pack of cigarettes a...

    Lydia S. is a 42-year-old British woman who recently moved to the United States. She smokes a half pack of cigarettes a day. She is 64 inches tall, weighs 185 pounds, and has a family history of heart disease. Her diet is high in protein, mostly from beef and chicken. She dislikes most vegetables except corn and potatoes. She eats fruit only occasionally and often skips breakfast. After taking a nutrition class at a local community college, Lydia is concerned...

  • Hello, someone posted answer to this question but i am sure part C & D were...

    Hello, someone posted answer to this question but i am sure part C & D were wrong. Can someone kindly answer it correctly? Thanks in advance. Linda receives utility from buying clothes and grocery items (At the JBS Grocery shop). Her budget is $304. The JBS shop is offering a $16 coupon if the amount spent on groceries is equal or greater than $100. Let Y be the quantity of units of clothes consumed with a price of $1 per...

  • Question 1: Mary Hartwell and Jane Jamail, college roommates, are considering the joint purchase of a...

    Question 1: Mary Hartwell and Jane Jamail, college roommates, are considering the joint purchase of a computer that they can share to prepare class assignments. Ms. Hartwell wants a particular model that costs $2,000. Ms. Jamail prefers a more economical model that costs $1,500. In fact, Ms. Jamail is adamant about her position, refusing to contribute more than $750 toward the purchase. If Ms. Hartwell is also adamant about her position, should she accept Ms. Jamail's $750 offer and apply...

  • Instructions: Answer the following questions as completely as possible. Write your answer neatly and legibly. When...

    Instructions: Answer the following questions as completely as possible. Write your answer neatly and legibly. When drawing a graph, make sure that you label axes and curves, and include appropriate coordinates. Always show your work. Suppose that Bridget and Erin spend their incomes on two goods, food (F) and clothing (C). Bridget’s preferences are represented by the utility function U(F,C) = 10FC, while Erin’s preferences are represented by the utility function U ( F , C ) = 0.20 F^2...

  • Question 1 Sue is maximizing her utility. Her MU/PX - 10 and Muy -40. Then the...

    Question 1 Sue is maximizing her utility. Her MU/PX - 10 and Muy -40. Then the price of Y must be ОООО Question 2 only m e Ellen is spending her entire income on goods X and Y. Her marginal utility from the last units of X and Y that she consumes is 25. Ellen's the prices of X and Y are the same. the price of good X is twice that of good Y. the price of good Y...

  • Read the attached article and answer the following questions. 1. What is the role of potassium...

    Read the attached article and answer the following questions. 1. What is the role of potassium in blood pressure? 2. Looking back at last weeks Super Tracker report - do you meet the 4700mg daily target for potassium? 3. Do you meet the 400mg daily target for magnesium? 4. Research shows that hypertension and type 2 diabetes can be prevented by dietary choices. List 3 ways that employers, government, doctors, etc. (you can use another group ) can either motivate...

  • Question 1: Louis the retired Canadian lives on a fixed budget and consumes only two goods:...

    Question 1: Louis the retired Canadian lives on a fixed budget and consumes only two goods: toques (T) and maple syrup (M). Suppose Louis monthly budget is 100 and the price of the two goods are (PT,PM) (4,2). (a) Make a properly labeled diagram illustrating Louis'budget constraint with T on the hori- zontal axis and M on the vertical axis. Indicate the area corresponding to the set of bundles (M, T) that Louis can afford. (b) What is the maximum...

  • What is a Serving of Carbohydrate? Common Serving Sizes of Carbohydrate-Rich Foods Fruit 1 sm piece...

    What is a Serving of Carbohydrate? Common Serving Sizes of Carbohydrate-Rich Foods Fruit 1 sm piece (4 9z) Applesauce (1/2 c) Blueberries (3/4 cup)Yogurt (6 gz) Kiwi (1 ea) Raspberries (1 c) Strawberries (1.25 c) Grape juice (1/3 c) Orange juice (1/2 c) Fruit juice blends (1/3 c) Milk Cow milk (1 c) Goat milk (1 c) Starches Bread slice (1 gz) Hamburger bun (1/2) Pancake (4 in) Dinner roll (1 gz) Tortilla (1 ea) Bran cereals (1/2 c) Cooked...

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