The budget constraint line cuts the horizontal axis at 12 units of X and it cuts the vertical axis at 20units of Y. If the price of good x is $20 and the price of Y is $12, then what does income equal.$240We can't tell from the information given$480$720

X-intercept = Income / Price of X Y-intercept = Income / price of Y We can use any of the above two…

Answered: The budget constraint line cuts the…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section21.1: The Budget Constraint: What The Consumer Can Afford

Problem 1QQ

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As a college student you work at a part-time job, but your parents also send you a monthly allowance. Suppose one month your parents forgot to send the check. Show graphically how your budget constraint is affected. Assuming you only buy normal goods, what would happen to your purchases of goods?
need quality answer Nuoya has $256 to spend on cherry and/or coconuts. The price of cherry is $12/kg and the price of coconuts is $17/kg. What is the slope of her budget line, if cherry is on the horizontal axis and coconuts are on the vertical axis? Round your answer to two decimal places, if necessary. Hint: is slope positive or negative?
On the diagram to the right is plotted a single bundle of 2 books and 3 DVDS consumed per month. This bundle is a point on the consumer's budget constraint. 10- 9- If the price of one book is $135.00 and one DVD is $90.00, then the consumer's level of monthly income is $ (round your answer to the neareast dollar). 8- 7- 2- 0- 9 10 Books (per month) 15 tv MacBook Air esc 80 DIL F1 F2 F4 F5 F6 F7 FB ! @ $ & * 1 2 3 4 7 8. 9 Q W E T Y tab ps lock A S F H J X C V M control option command DVDS (per month) N * *
The graph of the budget line below has dollars on the vertical axis and food on the horizontal axis. Which statement is false? D 100 Food The vertical intercept represents all money available for purchasing. The distance OA shows the amount of money spent on OD amount of food. If the amount of money available is known in this graph, then the absolute and relative price of food is known also. The horizontal intercept represents all the food the consumer could purchase with the budget available.
On the diagram to the right is plotted a single bundle of 2 books and 3 DVDs consumed per month. This bundle is a point on the consumer's budget constraint. If the price of one book is $135.00 and one DVD is $90.00, then the consumer's level of monthly income is $540 (round your answer to the neareast dollar). Use the line drawing tool to draw the consumer's budget constraint. Label this line 'Budget'. Carefully follow the instructions above, and only draw the required object.
: Given that Rhumbi's budget line is 25=1/4 Cake +Tea and the price of tea is R10. What is Rhumbi's income and price of cake?
Use the graph on the right to sketch the budget constraint. 1.) Using the line drawing tool, sketch the following budget constraint. Label your line 'BC'. Px $14.00 Py $9.63* Income $308.00 Note: Carefully follow the instructions above and only draw the required object. Units of Y 32- 28- G 24- 20- 16- 12- 8- 4- 0- 0 4 8 12 16 Units of X 20 24 28
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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?
Diagram the following budget constraint where Income - $10,000, Px – $100 and Py - $250.
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Melanie has an income of $140 which she can spend on tea at $8 per cup or used clothes at $20 per clothing. What is Melanie’s budget line if her income and all prices increase by 20%?

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The budget constraint line cuts the horizontal axis at 12 units of X and it cuts the vertical axis at 20 units of Y. If the price of good x is $20 and the price of Y is $12, then what does income equal. $240 We can't tell from the information given $480 $720