b. Pričěš añd income remain unchanged O c. Price of apples increased, the price of oranges decreased and my income remained unchanged O d. Price of apples and oranges increased and my income remained unchanged
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- quantity of bread 100 90- 80 70 60 50 40- 30 20 10 B A 10 20 30 40 50 60 70 80 quantity of apples Juan is a consumer of apples and bread. Which of the following events could cause Juan to change his optimal consumption bundle from B to A? An increase in both the price of apples and bread. An increase in income. O An increase in the price of bread. An decrease in income.7.If pizza is a normal good, then which of the following could be the value of incomeelasticity of demand?Paul consumes cheese and wine and his income is $200. Is it possible that when the price of one pound of cheese is $5 and the price of wine per glass is $5, Paul consumes 10 glasses of wine and 30 pounds of cheese per week, but when the price of one pound of cheese is $2 and the price of wine per glass is $10, Paul does not consume any cheese and spends all of his income on wine?
- Questions 6 (Demand). When the price of x1 is $8 and the price of x2 is $5, Jenny consumes 20 units of x1 and 10 units of x2. Suppose that when the price of xX2 increases to $7, Jenny consumes 25 units of x1. a) What type of goods are x1 and x2? b) How many units of x2 does Jenny consume after its price increases? Hint: Calculate her income with the first allocation of goods. Questions 7 (Slutsky Equation and Consumer Surplus). Robert's utility function for x and xa is:why does a decrease in income cause an increase in both equilibrum price and quanity of an inferior good, such as macaroni and cheese?1. Discuss fully the effect of each of the following to a couple’s demand for children and other goods. Answer at ceteris paribus. a. Increase in a couple’s income b. Increase in the net price of children
- Figure#5 Quantity of M&M's (0,10) 10 2. 41 Quantily o SkelesQuantity of Potato Chips A B E C Quantity of Diet Coke Refer to Figure 21-1. Which point in the figure represents the consumer's income divided by the price of Potato Chips? Point A Point C Point D Point EMarge also buys pizza for $10 and Pepsi for $2.She has income of $200. Her budget constraint willexperience a parallel outward shift ifa. the price of pizza falls to $5, the price of Pepsifalls to $1, and her income falls to $100.b. the price of pizza rises to $20, the price of Pepsirises to $4, and her income remains the same.c. the price of pizza falls to $8, the price of Pepsifalls to $1, and her income rises to $240.d. the price of pizza rises to $20, the price of Pepsirises to $4, and her income rises to $500
- This week Sara’s income falls from $12 to $9 a week, while the price of popcorn isunchanged at $3 a bag and the price of a smoothie is unchanged at $3.g. What is the effect of the fall in Sara’s income on her real income in terms ofsmoothies and in terms of popcorn?h. What is the effect of the fall in Sara’s income on the relative price of a smoothiein terms of popcorn? What is the slope of Sara’s new budget line if it is drawnwith smoothies on the x-axis?.Andre has $13.50 a week to spend on tortilla chips and pretzels. The price of a bag of tortilla chips is $ 2.25 and the price of a bag of pretzels is $ 0.75. Draw Andre's budget line and label it. >>> Plot the quantity of pretzels on the x-axis. Andre can afford to buy 10 bags of pretzels and 2 bags of tortilla chips. A. True B. False Andre can afford to buy 11 bags of pretzels and 3 bags of tortilla chips. A. True B. False The relative price of a bag of tortilla chips is () ▼ bags of pretzels dollarsExhibit 3-1 Is 01 250 350 150 Quantity 96 2. Price (dollars)