Suppose Cawlin has a budget of $90 that he spends on movies (Q) and roller skating (Qa. The price of movie tickets recently increased from $6 per person to $9 per person, and the price of roller skating decreased from $6 to $5 per person What is Cawlin's new budget constraint? Provide your answer below:

Q: Suppose the price of Pizza is $10 the price of cola is $1, and the consumer's income is $60. In…

A: Budget line is the feasible combination of all goods and services that can be bought given the…

Q: A consumer has income of $3,000. Wine costs $3 per glass, and cheese costs $6. What is the slope of…

A: Budget line: M = Px . X + Py . Y Slope : (-) Price ofwine Price of cheese

Q: Which of the following statements is true?     Total utility is the extra satisfaction from the…

A: Utility refers to the satisfaction received from consumption of a good or service. In other words,…

Q: Which statement BEST describes the principle of diminishing marginal utility?

A: C is the correct option and describes the principle of marginal utility.

Q: Suppose you have $48 to spend on the two items in the graph below. Q books 4 A 1 2 6 8 Q…

A: If movie costs $8 line B represents my budget constraint. If books costs $12 line B represents my…

Q: Show how the budget constraint affects utility maximization.

A: Answer: Introduction: A consumer maximizes his/her utility by choosing the bundle of goods that…

Q: 6)       According to the law of diminishing marginal utility, _________? A) Additional consumption…

A: Law of diminishing marginal Utility: It says that by consuming more goods marginal utility will…

Q: Suppose the price of Pizza is $10 the price of cola is $1, and the consumer's income is $60. In…

A: The budget line is a straight line that represents a different combination of two goods a consumer…

Q: You run a foundation that provides help to families during the holiday season. You distribute both…

A: Budget line shows various combination of 2 goods that a person can buy, given the prices of the…

Q: Suppose Cawlin has a budget of $90 that he spends on movies Q) and roller skating (Qal. The price of…

A: a budget constraint represents all the combinations of goods and services that a consumer may…

Q: Suppose the price of pizza is $10, the price of cola is $1, and the consumer's income is $60. In…

A: Given that Income(M)= 60 Px= Price of pizza = $10 Py= Price of Cola =$1

Q: Suppose that the price of T rises by $1 and the price of L falls by $1.25. Can Paula still afford to…

A: As the price of T rises by $1 and as mentioned the price of L reduced by $1.25, it is quite possible…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Indifference curve shows the combination of two goods which give a consumer same level of…

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: (g) The opportunity cost of getting one piece of clothing would be  400100=4 units of food, which…

Q: If BC2 is the relevant budget constraint, then the consumer will purchase bundle

A: Budget constraint represents all the combination of goods which the consumer can purchase with his…

Q: What do you understand by price line and budget line? Assuming that a consumer has a monthly income…

A: Budget Line(BL) shows all of the possible combinations of two goods that a consumer can purchase,…

Q: The consumer is in equilibrium at a point where the budget line

A: Consumers are balanced at the intersection of the budget lines.

Q: A budget constraint, budget set or budget line: 1. Illustrates the combination of units of…

A: The economics is considered to be a very vast area of study, as economics is used in everyday life,…

Q: Consider the indifference curve map and budget constraint for two goods, X and Y. Suppose the good…

A: Normal goods are those goods whose quantity demanded increases, when the income of the consumer…

Q: As a college student you work at a part-time job, but your parents also send you a monthly…

A: Budget constraint line shows the different possible combination of goods that can be purchased…

Q: If the consumer's income rises to $100 while the prices of pizza and cola are constant, then the…

A: Budget line would increase and rotate outwards towards cola axis.

Q: Avery is currently using up the entire weekly budget she has allocated to purchasing Goods X and Y.…

A: Given  Marginal utility on last unit of good X  that Avery buy by using weekly income = 14 and last…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Hector is consuming two goods, i.e., bottled water and soda pop.  He has a constant budget and fixed…

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: Here,

Q: Suppose the price of A is $2 and the price of B is $3 and that good A is plotted on the horizontal…

A: As given price of good A is $2 and price of good B is $3. After that price of good A double that…

Q: Suppose a consumer has a budget of $200 to spend on two goods, X and Y, whose prices are $20 and…

A: Answer: Given, Total budget = $200 Price of good X PX=$20Price of good Y PY=$10 (d). A consumer is…

Q: The marginal rate of transformation of y for x represents *         a)the rate at which the consumer…

A: The marginal rate of substitution refers to the rate at which a consumer gives up a good to get an…

Q: Suppose Jane has $100$⁢100 and is going to have a birthday party. She wants to order pizza and…

A: An individual make purchase of different goods and services according to his income level and the…

Q: Suppose that price of good X falls by 50 % while price of Y falls by 25% and Income falls by 50%.…

A: Assume the budget line before the change is : 10x+20y=200 Px=10 and Py=20 Price of x falls by 50%…

Q: Suppose the weighted marginal utility for two goods, x and y, at a position of consumer equilibrium…

A: Here, weighted marginal utility is given as 70 at equilibrium, it implies that MUm is equal to 70.

Q: For the consumer whose choices are shown in the diagram, the substitution effect of the price change…

A: Substitution effect is change in demand or consumption of  a commodity or a service due to a change…

Q: A college student has two options for meals: eating at the dining hall for $6 per meal, or eating a…

A: The weekly food budget of the consumer is $60 and price of one meal is $6 and one cup of O‘soup is…

Q: Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $5.00 and…

A: (Q) Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $5.00 and…

Q: Assume well behaved preferences for a consumer. If total price of good on Y axis goes up, ceteris…

A: A well-behaved consumer means the preference relation is convex and monotonic in nature

Q: draw a budget constraint and indifference curves for pizza and pepsi .show what happens to budget…

A: A budget constraint refers to the different combinations of two commodities that can be consumed by…

Q: Suppose there are 2 commodities ( good x and good y( and the consumer faces the following prices,…

A: In consideration of the bundle of 10 units of x and 0 unit of y, total cost will be $10 ( = $1*10 +…

Q: Suppose the price of product X is Rs.500 and the price of product Y is Rs.1000 and one of a family…

A: Definition Budget line: It is a locus of points which shows all the possible combinations of the two…

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: Opportunity cost refers to the value of given up benefit in the process of obtaining some other…

Q: Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500.…

A: Given : M=budget=$1500 Price of meatloaf=$375 and price of Pineapple= $150 Let m be the quantity of…

Q: Which budget constraint panel in Figure below shows the combined effects of an increase in the price…

A: Herez given budget constraints shows the quantity of oranges on y-axis and quantity of apples on…

Q: During calamities, such as typhoons, fires, or the ongoing pandemic, the government provides…

A: A budget line depicts the combinations of two commodities that a consumer can consume given a budget…

Q: Suppose Victoria has a budget of $66 that she spends on movies (Q1) and roller skating (Q:). The…

A: Budget constraint: - it is the representation of different combinations of two goods that a consumer…

Q: Alex has a budget of $100 a month for movie tickets and restaurant meals. A movie ticket will cost…

A: Given Alex total budget for movie tickets and restaurant meals (m)=$100 Price of movie ticket P1…

Q: Leyla consumes goods X and Y. The price of good X is Px and the price of good Y is Py, Leyla’s…

A: Budget constraint refers to the different combinations of two goods that a consumer can consume with…

Q: Which combinations of burritos and sodas are unaffordable--those to the left of the line in the…

A:

Q: Given marginal utility per dollar of guavas is greater than marginal utility of apples, how will the…

A: A consumer is a person who buys products that are available in the market. He does it for satisfying…

Q: Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $5.00 and…

A: Budget = $20  Price of burger = $5 Price of pizza slice = $2