Microeconomics
2nd Edition
ISBN: 9780073375854
Author: B. Douglas Bernheim, Michael Whinston
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 5, Problem 1P
a)
To determine
Find the income earned by Channing.
b)
To determine
Find the amount of butter consumed by Rupert.
(c)
To determine
Find the price of butter consumed by Aron.
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Jessie is attempting to draw her budget constraint for purchasing cookies and strawberries. At a maximum, she could consume 500 strawberries; she labels this point on the vertical axis of her budget constraint. At a maximum, she could consume 200 cookies; she labels this point on her graph. If the price of a cookie is $0.50 and her budget is $100, what is the price of a strawberry?
Jacob receives an allowance of $6 per week. He spends all his allowance on ice
cream cones, $0.50 per cone, and cans of Lemon Fizz soda, $1 per can. His
budget constraint is shown on the graph to the right. Now suppose that Jacob's
allowance climbs to $10. Show how this alters his budget constraint.
cans of soda. (Enter
Jacob's new budget constraint intersects the x-axis at
your response as a whole number.)
Ice cream (number of cones)
20-
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11-
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6-
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0-
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T
1
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BC.
5 6 7 8 9 10 11 12
Lemon Fizz (number of cans)
Q
Q
Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150.
What is the expression for Raymond’s budget constraint?
Draw a graph of Raymond’s budget line (meatloaf on the y axis).
Show how Raymond’s budget line changes if the price of pineapples increases to $370.
Suppose Raymond decides to cut his monthly budget in half. Coincidentally, the next time he shops, he learns that meatloaves and pineapples are on sale for half price. Show what happens to Raymond’s budget line?
Chapter 5 Solutions
Microeconomics
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6P
Ch. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10PCh. 5 - Prob. 11PCh. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 1CPCh. 5 - Prob. 2CPCh. 5 - Prob. 3CPCh. 5 - Prob. 4CPCh. 5 - Prob. 5CPCh. 5 - Prob. 6CPCh. 5 - Prob. 7CPCh. 5 - Prob. 8CP
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