Assume that a consumer can buy only two goods, X and Y, and has an income of $13,000. The price of X is $60 and the price of Y is $140. What is the slope of the budget line if X is measured horizontally and Y is measured vertically? Note that you will need to include a negative sign in your answer. If needed, round your answer to the nearest two decimal places.

Assume that a consumer can buy only two goods, X and Y, and has an income of $13,000. The price of X is $60 and the price of Y is $140. What is the slope of the budget line if X is measured horizontally and Y is measured vertically? Note that you will need to include a negative sign in your answer. If needed, round your answer to the nearest two decimal places.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 2SQP

See similar textbooks

Similar questions

7. Suppose the consumer buys pizza and soda. The price of pizza is $15 and the price ofsoda is $3. The consumer’s income is $180. Suppose that soda is measured on the x-axisand pizza is measured on the y-axis.(a) The slope of the budget line is -1/5. The intercept on the y axis is 12 and the intercepton the x axis is 60(b) The slope of the budget line is -1/5. The intercept on the y axis is 15 and the intercepton the x axis is 3(c) The slope of the budget line is -5. The intercept on the y axis is 12 and the intercepton the x axis is 60(d) The slope of the budget line is -5. The intercept on the y axis is 60 and the intercepton the x axis is 12
Assume that a person's vitility function is given Assume by the following function. TU = 2x¹¹2,¹/2 also that the price of x is 22 and the price of is 26 and that the budget is 2240. what is the optimal amount of goods x and that should be purchused with this budget? of y у
Last week Sara’s income was $12 a week. The price of popcorn was $3 a bag, and the price of a smoothie was $3.e. Draw a graph of Sara’s budget line with the quantity of smoothies on the x-axis.f. What is the slope of Sara’s budget line? What determines its value?
Assume that a consumer has two goods to consume: medical care services (M) and all other goods (X). She has monthly income of $4000. a. Plot how the budget constraint should change when this consumer’s income increased to $8000. Remember to label the origin, axis, and intercepts on your graph.
Suppose Matt’s income is $120. He plans to spend it on two goods bread and avacado. Prices are: Pb = $4 per loaf of bread, Pa = $1 per avocado If Matt spends all his income on loafs of bread, how many does he buy? If Matt spends all his income on avocadoes, how many does he buy? If Matt buys 10 loaf of bread, how many avocados can he buy? Plot each of the bundles from parts A – C on a graph that measures avocadoes on the horizontal axis and loaves of bread on the vertical axis, connect the dots to find Matt’s budget constraint. Show what happens to the budget constraint if his income falls to $100, (prices do not change). Show what happens to the budget constraint if price of avocado rises to Pa = $2 per avocado, (income and price of loaves of bread did not change).
Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. What is the slope of the budget line if the quantity of apples were measured on the horizontal axis and bananas on the vertical axis? −0.5 −0.8 −1.6 −2
Monica likes to spend 30 dollars weekly on movies and burgers movie ticket costs 6 dollar each and burger cost 3 dollar each? 1. What is the maximum number of burgers she can have in a week given her budget of 30 dollar? 2. Draw monica s budget constraint line using the horizontal axis to represent the quantity of movie tickets and the vertical axis to represent the quantity of burgers. Be sure to compute and show the x and y intercepts. What is the slope of the budget constraint line you have drawn?
5. Assume that a consumer has two goods to consume: medical care services (M) and all other goods (X). She has monthly income of $4500. A. Assume that the price of medical care services is $500 per unit and price of other goods is $100 per unit. Plot the budget constraint of this consumer. Remember to label the origin, axis, and intercepts on your graph. B. Plot how the budget constraint would change when the price of other goods increases to $150 per unit. How did the relative price change? Briefly explain. C. Did the consumer better off or worse off after the change in price? Please explain. (Hint: you can use concepts of income effects and substitution effects to answer this question). D. From your own experience, how did your budget constraints most recently change? Was it due to the COVID pandemic?
Question: How We Can Check Convexity And Monotonicity Of The Utility Function. How we can check convexity and monotonicity of the utility function.
PLS ONLY GRAPH THE INDIFFERENCE CURVES. i dont need the first part of the question
Write down the equation for the budget constraint and then graph it for .. Px = $100 Py = $25 Income = $5,000.00
A consumer buys Bread (B) and Milk (M) each week at price of 20 and 16 respectively. Suppose that the consumer's current consumption of Bread and Milk is giving him MUBread = 80 and MUMilk = 70. Is the consumer buying the utility-maximizing combination of bread and milk? If not, how should he reallocate his expenditures between the two goods to maximize utility? Draw diagram and explain.