Please see below. Need help with both please. Why must a budget constraint have a negative slope?O Income and quantity demanded are inversely related.On a budget constraint, buying more of one good requires buying less ofanother.The spreading effect.O Decreasing returns to scale.Diminishing marginal utility.What is one reason for why a production possibility curve would be bowed out (awayfrom the origin)?constant returns to scaleincreasing returns to scalespecializationconstant marginal product

Why must a budget constraint have a negative slope? Income and quantity demanded are inversely related. On a budget constraint, buying more of one good requires buying less of another. O The spreading effect. Decreasing returns to scale. Diminishing marginal utility.

Why must a budget constraint have a negative slope? Income and quantity demanded are inversely related. On a budget constraint, buying more of one good requires buying less of another. O The spreading effect. Decreasing returns to scale. Diminishing marginal utility.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 19CTQ: Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers...

See similar textbooks

Related questions

Q: A person has $50/week for transport expenditures for their job. Uber ride = $10. Subway ride…

A: Utility is maximized when the marginal utility from the consumption of additional unit becomes zero.…

Q: Price for X is $1 and Y is $2. Budget is $9. Good X Good Y…

A: The utility maximizing level is given as MUx/Px= MUy/Py Good X Good Y Quantity MUx/Px…

Q: On what portion of the demand function does total revenue rise as price rises? The price of tea…

A: 1. Law of demand suggests that other things remain constant with a rise in the price of a commodity…

Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Suppose a consumer’s preferences can be represented by the utility function U(X,Y) = Min (2X,Y).…

A: Utility function: U = Min (2X, Y) --------------------- Budget constraint: Price of good X (Px) = $2…

Q: ay must a budget constraint have a negative slope? O Income and quantity demanded are inversely…

A: Budget constraint measures the combinations of two goods that a consumer can buy with the given…

Q: ) Causes consumers to become sadder if they like the good on the vertical axis. O Causes consumers…

A: Indifference curve is an economic tool to describe the combination of two products consumed by a…

Q: Assume the demand for cherries is elastic and that the producer of cherries increases the price of…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Draw a budget constraint and indifference curve for Pepsi and Pizza on the same graph. Show the…

A: As we answer only 3 subparts and the question has more than 3 subparts, we would be answering the…

Q: This module considers important concepts in economics: Total Utility, Marginal Utility, Diminishing…

A: Law of diminishing marginal utility states that with every additional unit consumption of a goods…

Q: Suppose a student has monthly income of Rs 10,000. He consumes only two commodities Sandwich and…

A: Budget constraint represents the various combinations of two goods that a consumer can purchase with…

Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…

A: The ability of a good to fulfill human needs is demonstrated by its utility. The utility function…

Q: if the price of a good increase and the good is a normal good the budget constraint will pivot…

A: Budget constraint: It refers to the goods and services a person can buy from their budget. It is the…

Q: A consumer consumes 2 goods, x and y. If the price of good x trebles and the price of good y doubles…

A: Situation 1 Let the initial price of good x be Px and good y be Py and income be M. The slope of…

Q: Kari requests two goods: X and Y. The utility function is given by: U(XY)=X-Y. Prices of X and Y is…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Simone's initial budget constraint is defined by the following equation:…

A: Hey champ,Welcome to this platform. Here you will get the answer with better quality in minimum…

Q: Hot-dogs (P = $1) Apple pie slices (P=$2) Hot-dogs Total MUMU/P Apple pie Total MUMU/P…

A: We have price of hot dog is $1 and price of an apple pie slice is $2 and income of $9

Q: Suppose the utility function is represented by the following equation: U (X, Y) = XY + X + 2Y + 2…

A: A budget limitation refers to the different combinations of goods and services that a consumer can…

Q: Assume the budget constraint and the indifference curves are both linear. Assume the consumer is…

A: A rational consumer maximizes his utility by trying to attain the highest indifference curve…

Q: В 1. If demand for good x is given by x(p, B) = – 2p, calculate the income and substitution effects…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: BC1 BC2 D Good X If the budget constraint shifts from BC2 to BC1, then A the consumer decreased the…

A: A budget constraint is a graphical representation of all conceivable combinations of two commodities…

Q: Arafia consumes two goods X and Y. Her utility function is given by U(x, y) = x"y. The price of Good…

A: Optimal consumption bundle is when MUx / MUy = Px / PyWhere, MUx = Marginal utility from good X, MUy…

Q: Joe's budget constraint equals 500 = 2F + 100S, where $500 is Joe's income, $2 is the price of food…

A: Budget constraint shows combinations of two goods that can be bought with the given level of income.

Q: Jack’s preferences are represented by the utility function U = XY^2. PX = 1, PY = 1.5 and his budget…

Q: What is the value of MRS at the optimal point and what does this value mean? b) What is the…

A: Utility refers to the level of happiness derived by a person when he./she consumes a good or…

Q: A consumer has an income of $400 and is deciding between two products: X and Y. Assume that the X…

A: Since there are multiple parts of the question, I am answering the first three for you. If you want…

Q: Solve the attachment. image

A: Given: Consumer's income is = $400 The price of X is = $10 The price of Y is = $2 Consumption of…

Q: An individual´s utility function is U = x0.5 y0.5 While the budget constraint is…

A: MRS = MUxMUy = 0.5 x-0.5 y0.50.5 x0.5 y-0.5 = yx equating MRS to price ratio we get: yx = 14 y = x4…

Q: . Assume the budget constraint and the indifference curves are both linear. Assume the consumer is…

A: "Since you have asked multiple questions, we will solve the first question for you."

Q: Assume the budget constraint and the indifference curves are both linear. Assume the consumer is…

A: An indifference curve measures the combination of two goods that provides the same amount of…

Q: The law of diminishing marginal utility allows us to conclude that A) demand curves slope downward…

A: Law of diminishing marginal utility states that as we consume more and more units of a commodity…

Q: Advertisement is one of the factors that influence customers to increase demand for a specific good.

Q: Demands differ from wants in thatA) wants require a plan to acquire a good but demands require no…

A: The three fundamentals problems of human beings are: 1. Wants are unlimited 2. The resources to…

Q: Christin has a monthly income of $500 that he allocates between two goods: food and clothing.…

A: a) Budget Constraint: Price of F*Quantity of F+Price of C*Quantity of C=Income Income=$500 Price of…

Q: The slope of the budget constraint is all of the following except …........

A: A budget constraint is faced by an individual and represents the different possible combinations of…

Q: A consumer has an income of $400 and is deciding between two products: X and Y. Assume that the X…

A: Budget constraints All the possible combinations of goods and services that a consumer can acquire…

Q: A consumer's budget is 137. A unit of good x costs 3 and a unit of good y costs 4. If the consumer…

A: Given: Consumer budget=137cost of good x=3cost of good y=4unit of good y purchased by consumer=3

Q: Harry consumes 2 goods, X and Y and he spends N$60 per month. The price of good X is N$4 and the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The prices of good A and good B are $3 and $2 respectively. Theodore has a budget of $29 to…

A: Price of A = 3 Price of B = 2 Income = 29 Consumption Bundle = (7 ,4 ) Budget line => 3A + 2B =…

Q: A budget constraint line represents the different combinations of two goods that will yield the…

A: The budget set (all bundle options on or below the budget line) shows all potential bundles of…

Q: Suppose a student has monthly income of Rs 20,000. He consumes only two commodities Sandwich and…

A: Budget line refers to the straight line which shows the amount of goods that can be purchased with…

Q: Q.1.14 Utility from consuming a good is understood by economists to mean; (a) how often we…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Dev likes to consume scones (Good X) and cups of coffee (Good Y). Her utility function is: U(x,y) =…

A: The following problem has been solved as follows:

Q: gpodY good X In the graph above, points Q. U and T represent different bundles of good X and good Y…

A: Marginal rate of substitution (MRS): - it is the rate that shows the number of units of one good…

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: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…

A: Given, U (F,C) = FC MUF= C MUC = F Income (I) = $100 Price of food (PF) = $2 Price of cloth (PC) =…

Q: Under what circumstance(s) if any can an increase in the price of sanitizers induce a consumer to…

A: An indifference curve is the locus of all combinations of two goods or services that yield equal…

Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

100%

Please see below. Need help with both please.

Why must a budget constraint have a negative slope?
O Income and quantity demanded are inversely related.
On a budget constraint, buying more of one good requires buying less of
another.
The spreading effect.
O Decreasing returns to scale.
Diminishing marginal utility.
What is one reason for why a production possibility curve would be bowed out (away
from the origin)?
constant returns to scale
increasing returns to scale
specialization
constant marginal product

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If a household's money income is doubled: Select one: the budget constraint will swivel at the Y-intercept O a. b. the budget constraint will shift in and parallel to the old one O c. the budget constraint will shift out parallel to the old one O d. the budget constraint is not affected
If you claim that an increase in the tax on groceries will result in an increase the price of groceries, then you are making a O positive statement. O macroeconomic statement. Onormative statement. rational-decision statement. marginal statement.
FIGURE 2-4 Production possibilites curve Food Refer to Figure 2-4. If the economy chooses to shift more of its resources into clothing, what will it have to give up? Select one: O a. larger and larger amounts of food per unit of added clothing as the quantity of clothing produced increases O b. nothing, since food and clothing are NOT substitutes O c. relatively equal amounts of food per unit of added clothing as the quantity of clothing produced increases Clohing
If a household's money income is doubled: Select one: O a. the budget constraint is not affected O b. the budget constraint will shift in and parallel to the old one O . the budget constraint will swivel at the Y-intercept O d. the budget constraint will shift out parallel to the old one
Question 3 Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units. (a) State whether 9 units of Good B and 12 units of Good A are attainable, unattainable, efficient or inefficient. [State all that applies.] Select one or more: attainable unattainable efficient inefficient
Which best exemplifes the concept of Opportunity cost? O additional units of consumption produce less additional utility than the previous unit utility cannot be compared across different people O the more money a consumer spends, the less is available to purchase other goods utility always increases through additional consumption
The supply curve is Choose the best options from the choices below. sloping, which means that of a good will be supplied at higher prices. O a. upward; less O b. downward; less Oc upward; more O d. downward; more From the following find the difference between Positive and Normative statements? O a. normative statements can be tested whereas positive statements cannot O b. positive statements and normative statements can be graphed Oc normative statements state "what is" and positive statements state "what ought to be." Od. positive statements can be tested whereas normative statements cannot
Principles of Economics 1 | S1 21/22 Time left 0:5) When the price of one good increases and the price of the other good and income are held constant, the budget line Select one: shifts parallel to the original budget line so that the new budget line is farther from the origin O b. shifts parallel to the original budget line so that the new budget line is closer to the origin rotates so that the intercept is farther from the origin on the axis representing the good that has experienced an increase in price O a. O c. O d. rotates so that the intercept is closer to the origin on the axis representing the good that has experienced an increase in price Next page
The shape of the production possibilities curve usually has a concave-shape. What does say about the factors of production when the production possibilities curse is a straight line? O diminishing return between the production of featured goods no diminishing return between the production of featured goods O increasing return between the production of featured goods O the factors of production are incapatable
Course dashboard Which of the following is TRUE? Lütfen birini seçin: O A. If bundles A and Blie on the budget constraint, we can say that the household has the same utility from consumption of the two bundles. O B. If price of one good increases without any other changes, the budget constraint will shift outward with the same slope. O C. Slope of an indifference curve is called as "Marginal Rate of Technical Substitution" O D. Points below a budget constraint are unattainable. O E. If the money income decreases without any other changes, the budget constraint will shift inward with the same slope.
1. An individual's budget Suppose Bob has a yearly budget of $120 to spend on oat milk and peanut butter. Oat milk is priced at $2 per quart, and peanut butter is priced at $6 per jar. If Bob spends his entire $120 on oat milk, he can buy jars of peanut butter. Use the blue line (circle symbol) to plot Bob's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of oat milk and peanut butter that are affordable for Bob. Finally, place the black point (plus symbol) on the point on Bob's budget constraint that corresponds to a scenario in which Bob spends $60 on each good. Note: Dashed drop lines will automatically extend to both axes. PEANUT BUTTER (Jars) 120 110 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 + 40 50 60 70 OAT MILK (Quarts) quarts of oat milk. If he spends his entire $120 on peanut butter, he can buy + + 80 90 + H 100 110 120 BC, ($120) ☐ Affordable Region $60 on Each BC₂ ($240) ?
Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers rises from 2 to 4. Why is file opportunity cost of bus tickets unchanged? Suppose Alphonsns weekly spending money increases from 10 to 20. How is his budget constraint affected from all three changes? Explain.