.A consumer that chooses to spend all of her income, and she dislikes most the two extreme points such as spending all income on pizza or spending all income on Pepsi, then at which point(s) on the budget constraint could be her alternative choice? a. X b. W c. Y d. V

.A consumer that chooses to spend all of her income, and she dislikes most the two extreme points such as spending all income on pizza or spending all income on Pepsi, then at which point(s) on the budget constraint could be her alternative choice? a. X b. W c. Y d. V

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

.A consumer that chooses to spend all of her income, and she dislikes most the two extreme points such
as
spending all income on pizza or spending all income on Pepsi, then at which point(s) on the budget
constraint could be her alternative
choice?
a. X b. W c. Y d. V

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Pls solve it
I need it in words not handwritten and don't copy from other place pleaseee do itttt your own solution
a. Create a graph with X on the horizontal axis and Y on the vertical axis. The equation of the budget constraint is: 5X + 10Y = 500 We can rearrange this to solve for Y: Y = (500 - 5X)/10 b. Plot a graph with the point (50, 25), where they spend half their income on each good. c. If the household income doubles to Rs. 1,000, the new budget constraint would be: 5X + 10Y = 1000 Rearranging for Y: Y = (1000 - 5X)/10 d. If after the change the household spends Rs. 200 on Y and Rs. 800 on X, we can plug these values into the budget constraint to solve for X and Y: 5X + 10Y = 1000 5(800) + 10(200) = 1000 This equation is not satisfied, so we can conclude that the household cannot spend Rs. 800 on X and Rs. 200 on Y with the new budget constraint.
b. Explain the relationship between the budget constraint and indifference curve at consumer optimum.
!
Jody has $360 to spend on her summer vacation. She decided to use the moneyon trips to the zoo and on tickets to the movies. Her original budget constraintis shown below. Let X represent movie tickets and Y represent trips to the zoo.i. What is the equation of the original budget constraint? ii. What is the price of a movie ticket? a trip to the zoo? iii. Assume a price change occurs and Jody now face the new budgetconstraint. What is the equation of the new budget constraint? iv. With the new budget constraint, what is the price of an amusement parkticket? a baseball ticket?
Sonia likes cupcakes and tea. She has Rs.100 to spend on cupcakes and tea; cupcakes cost Rs.20 each, and cups of tea cost Rs.10 each. Sketch her budget constraint on a graph with cupcakes on the horizontal axis and cups of tea on the vertical axis. Sonia also has a calorie constraint: she can only consume 800 calories, and each cupcake has 200 calories, while tea has no calories. On your graph, sketch in Sonias calorie constraint and indicate her budget set - the set of feasible combinations of cupcakes and tea given her two constraints. Label all the kinks of Sonias budget set with their coordinates.
Please assist wirh question d and e