Q: pound, and the price of chicken nuggets budget of $3 onsumer gets from the different quantities of…
A: We have given that price of rice (R) is $1.79 per pound Price of Chicken nuggets(N) is $14.12 per…
Q: Bart and Lisa are both optimizing consumers in themarkets for shirts and hats, where they pay…
A: The marginal rate of substitution refers to the rate at which one substitute the amount of commodity…
Q: Q39. Create your own question according to the information below. Using the budget constraint, Px*X+…
A:
Q: An individual's utility function is given by u = 1000 x, + 450x. + 5x, x. - 2x - x where x, is the…
A: The utility is the want satisfying power of the commodity. The utility function is the function of…
Q: Robinson makes $200 a week and spends his entire income on running shoes and basketball shorts.…
A: As per given data, first We can analyse the optimal coñsumption pattern of Mr Robinson using budget…
Q: 3. Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns…
A: "Since you have posted multiple part questions, I can only answer the first three parts, rest you…
Q: a. Marsha has a salary of $500. He spends his entire budget on milk and cookies. The cost of a…
A: The budget constraint of an individual shows different combinations of two goods that an individual…
Q: Terry’s utility function over leisure (L) and other goods (Y ) is U(L, Y ) = Y + LY. The associated…
A: Given Terry’s utility function over leisure (L) and other goods (Y ) is U(L, Y ) = Y + LY. The…
Q: stand. Non-wage income in royalties from the corn baller are $40 a day. a. Find the MU, and MUc. b.…
A:
Q: In this hypothetical economy. there are two consumers living over two periods of life. Ann's incomes…
A: Ann's Income 1st Period = 50,000 2nd Period = 50,000 Bob's Income 1st Period = 0 2nd Period =…
Q: Elizabeth M. Suburbs makes $200 a week at her summer job and spends her entire weekly income on new…
A: Two goods are perfect complement , if they are used together in the same proportion.
Q: Let us consider the case of Afzal who earns 3000 Bangladeshi Taka (BDT) per week. Afzal can buy two…
A: Income = 3000 BDT per week price of tomato = 45 BDT price of carrot = 55 BDT let X = Tomato Y =…
Q: Consider food stamps where the government gives a person $100 worth of food stamps that can only be…
A: A budget line is a graphical portrayal of all potential mixes of two merchandise which can be bought…
Q: Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns a…
A: Budget line is a graphical representation of all possible combinations of two goods which can be…
Q: Mika earns $395 per week which she spends entirely at the grocery store, purchasing either food or…
A: Hey champ,Welcome to this platform. Here you will get the answer with better quality in minimum…
Q: 1) Sharon spends her time (20h) between leisure (L) and work and he consume Y product from his…
A: Given information Total time=20 hrs L--- Leisure time H---- Hours of work Utility function U=LY+2L
Q: . Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Consider your decision about how many hours towork.a. Draw your budget constraint assuming thatyou…
A: a. In the above diagram BL' represent the budget constraint when there are no taxes on income and…
Q: 1. -- ) and leisure ( L), U = CL². The wage rate is $20 per hour, the price of consumption is $10…
A: Here we calculate the utility maximizing and the MRS and consumption equal to real wage by using the…
Q: . Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns…
A: Hi. since there are multiple questions we will answer the first three questions.
Q: Sheryl's preferences for consumption and leisure can be expressed as U(C, L) = (C – 100) × (L– 40).…
A: We are given the following information- Sheryl's preference for consumption and leisure is expressed…
Q: Mohamed can buy either pizza or soda. If the price of pizza and soda doublest and so does Mohamed's…
A: Budget Constraint: When a consumers income restricts their consumption habits, it is known as a…
Q: Consider food stamps where the government gives a person $100 worth of food stamps that can only be…
A: Budget line A budget line is a graphical depiction of all conceivable combinations of two…
Q: Ana decides every day how many hours to work and how much beef to consume. She spends all income…
A: given that in the question, U(t,y)=2t^1/2 + y W=1 t=24-h where, Y is the consumption of beef and,…
Q: 2. James is an undergraduate student who has £800 of income to spend each semester on pizza and…
A: Budget constraint shows all the possible combinations of bundles that the consumer is able to…
Q: while drawing an individual's demand curve for a commodi Which one is it? The preferences of the…
A: In economic aspects, a demand bend is a diagram portraying the connection between the cost of a…
Q: Shari can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces a 10% payroll…
A: In the above questions, it is given that : Shari can work up to 80 hours per week Pre-tax wage =…
Q: Suppose Monty has 860 to spend on treats () and toys (9). The price of toys is p, -$2 and the price…
A: Given that Monty's utility function is ux,y=2xy ................(1) Marginal utility from good…
Q: Soru 23 Which of the following is FALSE? Henüz cevaplanmadı Lütfen birini seçin: 4 üzerinden O A. If…
A: Answer - Need to find- Which statement is false Evaluating the options :- A.If the money income of…
Q: a) If Kyeiwaa has GhC 50 of non-labor income per week, and she faces a market wage rate of GhC 5 per…
A:
Q: Mrs. Yamoah's has an income of GHS 200 to spend on two commodities Maize and Yam. Maize costs GHS…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: consider your decision about how many hours to work. a. draw your budget assuming that you pay no…
A: a. Initially, the budget constraint is BC when there is no tax. When there is tax, consumption…
Q: Consider a consumer's annual budget constraint for two goods: "everything else" and "tools". When…
A: A budget line is a graphical representation of a combination of all the commodities that a consumer…
Q: 3. Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Rodrigo is taking a year between high school and college to work and save up. His utility from…
A:
Q: 9. Irene earns 8 dollars an hour. She has no nonlabor income. She has 30 hours a week available for…
A: Here, we calculate number of hours per week will she work by following method given below as;
Q: Q3. Suppose the market wage is w, Tom's parents give him N dollars per month, and Tom has T hours…
A: Time may be roughly divided between time spent on eating, sleeping, caring for others, playing,…
Q: 3) Eric's wage rate is $10 an hour. He has no earnings other than his labor income. His utility…
A: as it is given wage rate =$10 ( an hour) utility function = U(C,R)=CR2 where c is consumption R is…
Q: Terry’s utility function over leisure (L) and other goods (Y) is U (L, Y) = Y + LY. The associated…
A: U(L,Y) = L+LY MUY=1+L MUL=Y Price of good=$1
Q: Soru 6 Jane has $500 a week to spend on clothing and food. The price of clothing is $25 and the…
A: Answer - Budget Constraint:- It is the equation or constraint which show all the combination of…
Q: By how much will the slope of Matt's budget constraint change if his income were to increase from…
A: In economics, a budget constraint represents all the combinations of goods and services that a…
Q: ite a budget constraint of this individual and plot it. splay graphically what is the optimal…
A: *Answer: *1 C = wT -wL Where , the price of consumption goods is normalised to Unity E and T is…
Q: Rich's Opportunities. Rich has no nonlabor income, and suppose the price of consumption is $1 per…
A: A change in the wage or salary will result in a shift in the amount of labour demanded. If the wage…
Q: 3. Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns…
A: Total income of the student = GHS 400 If she spends all her income yogurt she gets 50. Thus price of…
Q: Each day, Luke must decide his leisure hours, L, and his consumption, C. His utility function is…
A: "since you have asked multiple parts, we will answer only first three parts for you, if you have any…
Q: Suppose NAWEC charges D5 for every kilowatt hour of electricity for the first 1000 used in a month…
A: Hi, thanks for the question. As per the guidelines we are allowed to attempt the first question. If…
Q: Using a choice diagram (like the one from Perloff used in the slides and copied below for your…
A: The compensating variation (CV) is the amount of money that would have to be given to a customers in…
Q: Mika earm $235 per week which she spends entirely at the grocery store, purchasing either food or…
A: Income = 235/week Price of Food = $1/ unit Price of Alcohol = $7/ unit Addition receives $76/week…
Q: b) Suppose that the price of jeans rises to $30a pair , how many shoes and jeans will she buy? c) To…
A:
Q: 2. David gets $3 per week as an allowance to spend any way he pleases. Since he likes only peanut…
A: Hi there, thank you for the question. Since we only answer up to 3 sub-parts, we will answer the…
Sameena works as a free-lance worker at a software house in Rawalpindi. Suppose
she keeps awake for 110 hours a week. Also suppose that part of this time she can
spend on earning money doing this job and using it for her consumption, and the rest
of the time she can spend on her leisure not earning money. At first she earns Rs.550
for every hour she works. Draw a figure showing Saima’s budget constraint, her
indifference curve for consumption and leisure and her optimum.
ii. If per hour wage paid to her increases to Rs.660 for doing exactly the same work,
draw figures to explain why she would increase her working hours or decrease her
working hours.
iii. Dr. Abida is planning for her requirement. Suppose she can consume her salary of Rs.
200,000 while she is in service or save her salary to consume it after retirement. When
she saves her salary, she will get 8% interest on it. Draw Dr. Abida’s budget
constraint, her indifference curve and her optimum.
iv. If interest rate goes up to 15%, draw figures to show when she will save more and
when she will save less
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Akua gets a research grant and her income increases to GHS 800 per month. What is the new equation of her budget line? What if income stays constant at GHS 400 and the price of Yoghurts increase to GHS10?Sven runs a daycare for some of the neighborhood children, where he earns $300/day inrevenue. He runs the daycare out of his home, for which the mortgage costs $3,000 per month($100 per day). Each day, Sven spends $50 on food, diapers, and other supplies. He also hassome toys and playground equipment that originally cost $500, but which he wouldn’t getany money for reselling today. Sven looks after all the children himself, so he doesn’t pay anymoney in labor costs. If he weren’t busy with the daycare, he could earn $120 per day as aprivate nanny. What is Sven’s daily economic profit from the daycare? (Select one from below) (a) $300: Economic profit is equal to revenue.(b) $180: That is his revenue minus opportunity cost.(c) $150: That is his revenue minus input cost.(d) $130: That is his revenue minus variable cost.(e) $50: That is his revenue minus accounting cost.(f) $30: That is his revenue minus economic cost.(g) $0: In the long run, all firms must make zero profits.(h) –$200:…Jayden's grandmother gives him $240$240 each month, which he spends on pizzas and burgers. Usually, he buys 44 pizzas for $180$180 and spends the remaining $60$60 on 44 burgers. However, the price of 11 pizza has increased by $5$5; the price of a burger has not changed. Now, Jayden will buy only 33 pizzas per month.Calculate how many burgers Jayden can afford to buy if he still wants to spend all the money. If necessary, round any intermediate calculations to two decimal places. For your final answer, write the exact value; do not round.
- Suppose you expect to earn $10 this year and $10 next year. Each dollar you earn this year can be either spent, or saved at an interest rate of 10%. If you want to spend more than $10 this year, you can borrow money at 10% interest and repay it next year. Next year, you plan to pay oyour debts (if any), then spend all your earnings and all your savings (if any). Draw your budget line between “dollars spent this year" and “dollars spent next year". Suppose the government imposes a 50% income tax on all your earnings this year and next year (not including your interest earnings). Draw your new budget line. Suppose the government imposes a 50% sales tax on everything you buy this year and next year. Draw your new budget line. Suppose the government imposes a 50% income tax on all your earnings this year and next year, including your interest earnings. Draw your new budget line. True or False: If interest earnings are not subject to income tax, then an income tax and a sales tax…5.2 David gets $3 per week as an allowance to spend any way he pleases. Because he likes only peanut butter and jelly sand- wiches, he spends the entire amount on peanut butter (at $0.05 per ounce) and jelly (at $0.10 per ounce). Bread is pro- vided free of charge by a concerned neighbor. David is a par- ticular eater and makes his sandwiches with exactly 1 ounce of jelly and 2 ounces of peanut butter. He is set in his ways and will never change these proportions. a. How much peanut butter and jelly will David buy with his $3 allowance in a week? b. Suppose the price of jelly were to increase to $0.15 an ounce. How much of each commodity would be bought? c. By how much should David's allowance be increased to compensate for the increase in the price of jelly in part (b)? d. Graph your results in parts (a) to (c). e. In what sense does this problem involve only a single commodity, peanut butter and jelly sandwiches? Graph the demand curve for this single commodity. f. Discuss the…Mary buys cell-phone services from a company that charges a minimum of $25 per month. For that $25, she is allowed 100 minutes of free calls. For any calls above 100 minutes, she pays 50 cents per additional minute. Draw graph that describes Mary's monthly bill as a function of total time.
- ] Suppose that a football team is holding tryouts for various positions. A certain playertries out for both offensive line and defensive line. He ends up making the team as an offensivelineman. However, he is actually better at the defensive position. He is puzzled by this so he asksthe coach to explain. What do you think the coach told the player? Relate this to an economicconcept or concepts we have discussed.Problem 2: Cleo's rides Cleo has a fixed weekly budget for bike and taxi rides, and the more the rides she makes, the happier she is. When the price of each bike ride was 3 yuan, she used to take the bike four times per week. Now the price of each bike ride went down to 1 yuan, but she has to pay a weekly subscription fee of 9 yuan to ride bikes. Her new choice is to make three rides per week. Is Cleo better off, worse off, or indifferent compared to before?A family with a monthly income of $2200 spends $850 for rent $225 for utilities and $325 for food. What percent of the family income is spent for cach?
- To make sure he has enough energy for the teaching, Ernie spares $60 every week tospend on Blue Bull and Gigantic energy drinks. A can of Blue Bull costs $2, and a canof Gigantic costs $3. Assume that fractions of a can are allowed.(a) Draw Ernie’s budget line, measuring Blue Bull on the horizontal axis and Giganticon the vertical axis.(b) How many cans of Gigantic can Ernie afford if he buys 15 cans of Blue Bull?(c) What is the maximum number of cans of Blue Bull Ernie can afford?(d) What is the slope of the budget line? Be sure to include the sign. Explain in wordswhat this slope measures.(e) Denote the number of cans of Blue Bull by qb and that of Gigantic by qg. Writedown an equation capturing Ernie’s budget constraint. How would the equation fora budget line be different?Tea 50 40 30 20 10 0 Tea 50 40 30 20 10 0 OC OA D Chart A 2 5 10 15 20 25 30 Scones Chart C 5 10 15 20 Tea 25 30 Scones 50 40 30- 20 10 0 Tea 50 40 30 20 10 Chart B 5 10 1 0 5 15 20 25 30 Scones Chart D Look at the figure Budget Lines for Tea and Scones. For months now. Agnes has had $20 per month to spend on tea and scones. The price of each cup of tea and each scone has been $1. Which of the charts shows what will happen to her budget line if the price of a cup of tea falls to $0.50? 10 15 20 25 30 Scones 1 pts3. Florence is a highly paid fashion consultant who earns $100 per hour. She has 16 hours per day that she can allocate to work or leisure, and she decides to work for 12 hours. a. Draw Florence's time allocation budget line for a typical day, and illustrate the indifference curve at her optimal choice. One of Florence's clients is featured on the front page of Vague, an influential fashion magazine. As a result, Florence's consulting fee now rises to $500 per hour. Florence decides to work only 10 hours per day. b. Draw Florence's new time allocation budget line, and illustrate the indifference curve at her optimal choice. c. Both the income effect and the substitution effect influence how a person decides to change their willingness to work in response to a change in wage. Explain what each effect means. Which effect is stronger for Florence?
