ZuoTi.Pro
Question

Mike has a part-time job and earns $50 per week. He spends his entire income on...

Mike has a part-time job and earns $50 per week. He spends his entire income on two goods: Hamburgers (which cost $2 each) and movie rentals (which cost $3 each). Draw Mike's budget constraint. Suppose that Mike decides to purchase 10 hamburgers and rent 10 movies this week. Is this choice within Mike's opportunity set? Show this choice on your graph.

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:
Mike has a part-time job and earns $50 per week. He spends his entire income on...
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

  • 1. List the characteristics of a perfectly competitive market. Give an example. Why do firms in...

    1. List the characteristics of a perfectly competitive market. Give an example. Why do firms in perfectly competitive markets have no control over the price of their products? 2. Mike has a part-time job and earns $50 per week. He spends his entire income on two goods: Hamburgers (which cost $2 each) and movie rentals (which cost $3 each). Draw Mike's budget constraint. Suppose that Mike decides to purchase 10 hamburgers and rent 10 movies this week. Is this choice...

  • 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.

  • 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...

  • Suppose that Jacob spends his entire (I) of $100 on concerts (C) and movies (M). The...

    Suppose that Jacob spends his entire (I) of $100 on concerts (C) and movies (M). The prices of a concert (Pc) and movie (Pm) are $20 and $10, respectively. The following table summarizes the data on his marginal utity per dollar (MU/P) for each unit of concerts and movies. ((Concerts (C) (Pc = $20) ((Movies (M) (Pm = $10) C MUc MUc/Pc M MUm MUm/Pm 1st 100 1st 60 2nd 80 2nd 45 3rd 60 3rd 40 4th 40 4th...

  • 1) Sarah has a certain amount of money budgeted for tea and snacks during the work...

    1) Sarah has a certain amount of money budgeted for tea and snacks during the work week, and she always aims to spend her entire budget. If she spends her entire budget on tea, she can afford 40 cups of tea. If she spends her entire budget on snacks, she can afford 8 snacks. What is the opportunity cost of a snack? Provide your answer below: _ cup(s) of tea 2) If a family spends its entire budget in a...

  • A consumer earns I a week and spends his entire weekly income on new dress shirts...

    A consumer earns I a week and spends his entire weekly income on new dress shirts and ties, because these are the only two items that provide utility to him. Further- more, he insists that for every shirt he buys, he must also buy a tie (without the ties, the new shirts are worthless and vice versa). Let Ps and Pt denotes the price of a shirt and the price of a tie, respectively. (a) Derive the consumer's demand function...

  • 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...

  • John spends all his money on his car and clothes. Every month he has $1000 to...

    John spends all his money on his car and clothes. Every month he has $1000 to spend, and each time he takes the car to the garage, it costs him $200, while each article of clothing he buys costs him $250.   What is the opportunity cost of one car trip to the garage? Briefly show your math. In the space below, draw John’s budget constraint, making sure to label every axis, line, intercept, and slope. John’s grandmother gave him a...

  • Damien Matthews is a busy actor. He allocates his Quantity Utility Quantity Utility ee time to...

    Damien Matthews is a busy actor. He allocates his Quantity Utility Quantity Utility ee time to watching movies and working out at the gym. The accompanying table shows his utility from the number of times per week he watches a movie or goes to the gym. Damien has 14 hours per week to spend on watching movies and going to the gym. Each movie takes 2 hours and each gym3 visit takes 2 hours a. Which bundles of gym visits...

  • Steve likes grabbing a small pizza on the way home stopping by Redbox to rent a...

    Steve likes grabbing a small pizza on the way home stopping by Redbox to rent a movie. Steve works a part-time job where he makes $30 per week; a small pizza costs $7.50, and a movie rental is $2. Draw Steve’s budget constraint. Illustrate on your graph the effects on Steve’s budget of each of the following. (a) Steve finds a coupon for one free pizza. (Do this one on your graph above) For the remaining two parts, redraw Steve’s...

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