Question

Chucky is on a tight budget. He has only
$9.60each
week allotted for juice and train tickets. A bottle of juice
costs
$1.60
and the cost of a train ticket is
$0.80.
Graph Chucky's budget constraint by moving the endpoints of the
line segment in the graph.

Answer #1

Alex has a part-time job and earns 90$ per week. He spends his
entire income on two goods: Donuts (which cost 3$ each) and
pomegranate juice (which cost 6TL each glass).
A-)Draw Alex's budget constraint. Suppose that Adrian decides to
purchase 10 donuts and 8 glasses of pomegranate juices this week.
Is this choice within Adrian's opportunity set? Explain and show
this choice on your graph.
B-)What is the slope of Alex budget line?
C-) What is the opportunity cost...

Homer and Barney only consume Duff. One week Homer finds he has
no money to buy any Duff and so asks Barney for a loan to purchase
his weekly consumption of 25 bottles. Barney - being a good friend
– and noting that the price of a bottle of Duff at the beginning of
the week is $4, offers to lend Homer $100 at a weekly interest rate
of 1%.
If Homer takes the loan from Barney and the price...

1. A student has an income of $100 and
buys only 2 goods: pizza and books. A pizza costs $2 a slice and
books cost $10 each. At the student’s present level of consumption,
his marginal utility of pizza is 4 and his marginal utility of
books is 2.
At the current level of consumption, is the student maximizing
his level of utility given his budget constraint?
b. Draw a graph showing his current consumption
point using indifference curves...

.Curious George must decide how much to work. He has 60 hours
per week available that he can spend either working or engaging in
leisure (which for him is creating various kinds of mischief). He
can work at a wage rate of $5 per hour. The Man with the Yellow Hat
(who looks after George) also gives him an allowance of $100 per
week, no matter how much George works. George's only source of
income that he can use for...

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...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 27 minutes ago

asked 27 minutes ago

asked 27 minutes ago

asked 28 minutes ago

asked 41 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago