1. For this exercise you'll be drawing a graph where we represent amounts of cookies purchased on the horizontal axis and amounts of coffee purchased on the vertical-axis. Ben's indifference curves all have a constant slope of -2. Draw a set of Ben's indifference curves and draw Ben's budget constraint if cookies cost $2 and coffee costs $4 and Ben has $12 available to spend. 2. What does Ben optimally purchase? Explain. 3. Suppose Ben is currently consuming 3 coffees and no cookies. At this point, Ben's marginal utility of cookies is 2 and Ben's marginal utility of coffee is 1. Using the prices from above: cookies cost $2 and coffee costs $4, how would you advise Ben to adjust his consumption if Ben wishes to optimize? Explain.

1. For this exercise you'll be drawing a graph where we represent amounts of cookies purchased on the horizontal axis and amounts of coffee purchased on the vertical-axis. Ben's indifference curves all have a constant slope of -2. Draw a set of Ben's indifference curves and draw Ben's budget constraint if cookies cost $2 and coffee costs $4 and Ben has $12 available to spend. 2. What does Ben optimally purchase? Explain. 3. Suppose Ben is currently consuming 3 coffees and no cookies. At this point, Ben's marginal utility of cookies is 2 and Ben's marginal utility of coffee is 1. Using the prices from above: cookies cost $2 and coffee costs $4, how would you advise Ben to adjust his consumption if Ben wishes to optimize? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Hi, can you explain the formula for get those results.

A: The formulas used to get the values of x1, x2....x9 depends on the values available and deduced in…

Q: Use the following table to ccalculate TFC - keep your calculation for follow up questions: Total…

A: Fixed cost is the cost that is not affected by the level of production of a firm; it is a cost that…

Q: Draw a graph of the following function: y= e^x/(1+e^x)

Q: Use the following table to ccalculate TVC - keep your calculation for follow up questions: Total…

A: Total variable cost is the cost that changes will the level of production. It increases with…

Q: In this market, the equilibrium price is Price (Dollars per box) 20 30 For each price listed in the…

A: The economy is working at an equilibrium price of $25 and a quantity of 200 units. The above…

Q: Which of the following is NOT a supply shifter? * O A. Technology OB. Number of sellers O C. Demand…

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

Q: Fill in the remaining cells of the following table. Average Variable Cost (Dollars per pair) Average…

A: The quantity represents the levels of output that a producer produces. Total cost is the sum…

Q: Hello. Could you also please include the graph how is it changed?

A: Macroeconomic equilibrium refers to the condition of an economy where the quantity of goods and…

Q: S. D. D. 11 S. D. D. S. D.

A: Demand means the quantity of goods that the consumers are willing and able to purchase during a…

Q: can you draw that IC that corresponds to the problem please

A: The IC curve shows the combination of two goods in the market that satisfy their want and give equal…

Q: a) How much is Output: b) How much is the firm's profit? Profit: $ c) What type of oligopolist is…

Q: None

A: Step 1: Plotting the weekly total revenue when the market price is $50, $75, $100, $125, $150, $175,…

Q: A library has a bookshelf to store books on that is 5 meters long. A children's book will take up 5…

A: The objective of the question is to determine how many children's books and dictionaries can be…

Q: draw an isocost/isoquant diagram for the question.

A: The ideal input mix refers to the blend of resources a company utilizes to achieve a specific output…

Q: Experiment with manipulating the shape of the line given on the following graph by selecting and…

A: There is no graph to answer the question.

Q: A measure calculated by taking the ratio of output to input.

A: Inputs are the resources hired for running the production process and it includes resources like…

Q: work nonstop until he has answered 154 practice problems for his economics his progress throughout…

A: Given information: Time Total problem answered 8:00 AM 0 9:00 AM 70 10:00 AM 112 11:00…

Q: Use the following to answer questions 8-12: Figure: The Market for Hamburgers Price of hamburger…

A: Producer surplus is the area below the equilibrium market price and is above the supply curve. It is…

Q: Create a table describing input combinations of labor and wheat flour in producing a certain cake.…

A: An isoquant depicts all possible combinations of elements that result in a specific outcome.

Q: 13) Suppose that the government intends to impose tariff on bananas after successful lobbying…

A: The world price of bananas is represented by Pw. The government imposed the tariff on bananas that…

Q: please could you draw out the diagram, i cannot picture it

A: To draw the graph of budget constraint we have to take the equation XP+Y=I as taken by the expert .…

Q: Demand and supply microanalysis about Economic graphs?

A: To find : What is demand and supply in economics.

Q: S.A flatter supply curve implies that prices are

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

Q: Remaining "How Did I Do?" Uses: 2/5 Two groups of.students decide to start their own tutoring…

A: Total cost is the sum of fixed and variable costs.

Q: What is the relationship between marginal cost (MC) curves and average cost (AC) curves?

A: The expense that is being incurred in order to reach a specific level of output is known as the…

Question

can someone please draw the graphs for this problem please and explain how to solve it.

1. For this exercise you'll be drawing a graph where we
represent amounts of cookies purchased on the horizontal axis
and amounts of coffee purchased on the vertical-axis. Ben's
indifference curves all have a constant slope of -2. Draw a set of
Ben's indifference curves and draw Ben's budget constraint if
cookies cost $2 and coffee costs $4 and Ben has $12 available
to spend.
2. What does Ben optimally purchase? Explain.
3. Suppose Ben is currently consuming 3 coffees and no
cookies. At this point, Ben's marginal utility of cookies is 2 and
Ben's marginal utility of coffee is 1. Using the prices from
above: cookies cost $2 and coffee costs $4, how would you
advise Ben to adjust his consumption if Ben wishes to optimize?
Explain.

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: Define utility function and budget constraint:

VIEW

Step 2: Plot the diagrams:

VIEW

Step 3: Calculate optimal purchase:

VIEW

Step 4: Explain adjustment:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 16 images

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

Can you draw all of this shifts with graph
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
MICROECONOMICS Questions 3 ( ALL OF IT IS ONE QUESTION!!!) For article 3 write the number of the graph that best describes what happened. Fill in only the appropriate boxes in the chart for article 3 and be sure and indicate if it is an increase or a decrease. For the graph use an arrow to indicate an increase or a decrease. Make sure you fill in the graph PLEASE Leave it blank if there is no change Masks (Now). The easing Covid-19 pandemic is expected to reduce demand for medical masks this year, joining a group of companies that have forecast a decline in business from Covid-19 prevention. Masks became a billion-dollar business for the St. Paul, Minn., manufacturer starting in 2020, when the virus’s rapid spread sent consumers and healthcare workers looking to secure facial coverings to try to avoid infection. Now, as the latest U.S. surge caused by the Omicron variant fades, 3M said they are seeing slowing mask sales. WHICH GRAPH BEST FITS THE ARTICLE. Graph # Graph…
please graph!
Travel Time Each Way Price of a Dress Store (Minutes) (Dollars per dress) Local Department Store 15 100 Across Town 30 86 Neighboring City 60 63 Juanita makes $56 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $56 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Price of a Dress Total Cost Opportunity Cost of Time (Dollars) (Dollars per dress) (Dollars) Store 100 Local Department Store 86 Across Town 63 Neighboring City 10:57 PM 36 F Clear 2/27/2022
The graph below shows the market for mandarin oranges in Odin for the month of November (in thousands of kilos). 1 6 5 X 4 3 2 450 750 10501200¹ 1350 300 600 900 Quantity per month Price 8 7 DS 0 150 Tools D₂ S2