Question

Tom’s income is $600. Assume that he consumes only two goods, watching basketball games and football...

Tom’s income is $600. Assume that he consumes only two goods, watching basketball games and football games. Tom had the same Total Utility for the following five options (i.e. he is indifferent between these options). Now assume that basketball game ticket cost $10 and football game ticket cost $10. Draw indifference curve and budget constraints and find out his utility maximizing combination.

Options

# Basketball games

#Football games

1

100

10

2

60

15

3

30

30

4

15

50

5

10

90
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Tom’s income is $600. Assume that he consumes only two goods, watching basketball games and football...
Tom’s income is $600. Assume that he consumes only two goods, watching basketball games and football games. Tom had the same Total Utility for the following five options (i.e. he is indifferent between these options). Options # Basketball games #Football games 1 100 10 2 60 15 3 30 30 4 15 50 5 10 90 Assume that the price of a basketball game is $6, and the price of a football game is $15. Draw Tom’s indifference curve along...
A budget line shows: Question 20 options: unlimited income. societal demands for goods. consumption possibilities. production...
A budget line shows: Question 20 options: unlimited income. societal demands for goods. consumption possibilities. production possibilites. If the market price for a ticket to the opera is $20, but the the opera is willing to sell tickets at $15, and Joe is willing to pay $25, if Joe buys a ticket at the market price then: Question 21 options: total surplus for the transaction is zero. total surplus for the transaction is $5. total surplus for the transaction is...
Homer consumes only donuts and beer. When he consumes less than 10 beers, Homer would gladly...
Homer consumes only donuts and beer. When he consumes less than 10 beers, Homer would gladly drink one more. After drinking 10 beers, Homer is so drunk that he does not notice any additional bottle he drinks (that is, the benefit of an additional bottle of beer is zero). Drinking more than 17 beers is beyond the processing capability of Homer’s liver and any additional bottle makes him sick (beer is no longer a “good” for Homer). Homer’s preferences for...
Assume that Andy consumes two goods X and Y. His total utility (assumed measurable) of each...
Assume that Andy consumes two goods X and Y. His total utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X and Y are, respectively, $5 and $10. Units of the Good Total Utility of X Total Utility of Y 1 2 3 4 5 6 7 8 50 95 135 170 200 225 245 260 400 750 950 1100 1220 1320 1400 1450 a. If Andy is given $65...
Amy has income of $M and consumes only two goods: composite good y with price $1...
Amy has income of $M and consumes only two goods: composite good y with price $1 and chocolate (good x) that costs $px per unit. Her util- ity function is U(x,y) = 2xy; and marginal utilities of composite good y and chocolate are: MUy = 2x and MUx = 2y. (a) State Amy’s optimization problem. What is the objective function? What is a constraint? (b) Draw the Amy’s budget constraint. Place chocolate on the horizontal axis, and ”expenditure all other...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
step by step solution for the below question please Flag this Question Question 11 pts What...
step by step solution for the below question please Flag this Question Question 11 pts What is the difference between positive economics and normative economics? Group of answer choices Positive economics deals with dynamic systems, while normative economics focuses on static systems. Normative economics deals with how the world actually works, whereas positive economics focuses on what people ought to do. Positive economics requires making value judgments, while normative economics relies solely on factual statements. Normative economics applies in cases...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT