not use ai please don't 2. Assume Juanita's budget constraint is originally BC, with the price of good Y being $2.Then her budget constraint changes to BC. (Each box is 2 units)Quantity of Good Y 20181614121086420BCBC0 2 4 6 8 10 12 14 16 18 20 Quantity of Good Xa. What changed for the budget constraint to move from BC, to BC,? Be as specific aspossible. (It is possible to provide what changes, in what direction and a dollar value.)b. Are goods X and Y complements or substitutes? Explain.c. Calculate the ARC cross-price elasticity of demand for good X with respect to good Y.d. Would this change in budget constraint result in a movement along or shift in the demandcurve for good X? Explain.d. Would this change in budget constraint result in a movement along or shift in the demandcurve for good Y? Explain

c. Calculate the ARC cross-price elasticity of demand for Good X with respect to Good Y.To calculate…

Answered: 2. Assume Juanita's budget constraint…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 12RQ: Why does a change in income cause a parallel shift in the budget constraint?

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Similar questions

As a college student you work at a part-time job, but your parents also send you a monthly allowance. Suppose one month your parents forgot to send the check. Show graphically how your budget constraint is affected. Assuming you only buy normal goods, what would happen to your purchases of goods?
Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
What is the rule relating the ratio of marginal utility to prices of two goods at the optimal choice? Explain why, if this rule does not hold, the choice cannot be utility-maximizing
Would you expect marginal utility to rise or fall with additional consumption of a good? Why?
If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?
Is it possible for total utility to increase while marginal utility diminishes? Explain.
Which budget constraint panel in Figure below shows the combined effects of an increase in the price of oranges and a decrease in the price of apples? (b) (c) (d) Oranges Oranges Oranges KREKE Apples -(a) Oranges Apples O panel a panel b panel c Apples O panel e Onone of the above Apples (e) Oranges Apples
7. Shifts in a budget constraint Darnell brings $30 to a basketball game to spend on hot dogs and beer. The following diagram shows his budget constraint: 20 18 BC 16 14 12 10 4 2 BC 2 4 6 8 10 12 14 16 18 20 HOT DOGS According to the diagram, hot dogs cost $ each, and beer costs $ per glass. Adjust the diagram to show how Darnell's budget constraint would change if the price of beer decreased. (Assume the price of hot dogs and Darnell's income remain the same.) GLASSES OF BEER
Lee has calculated her marginal utility from buying pizza slices and soda (shown on the table in the worksheet) and wants to use these data to decide how to rationally spend the money she has. The price of pizza is $2.00 and the price of soda is $2.00 question 9 (a) given these prices and your worksheet calculations, what is the first product lee will buy? (b) would lee ever buy four slides of pizza? Why/why not? question 10Given the data in your worksheet, how many pizza slices and sodas lee should buy to maximize her total utility if she rationally spends her budget of 10.00? question 11 when the price of pizza changes, lee's MU/$P changes. If the price of pizza decreases to $1.50 and her budget decreases to $7.50, how many pzza slices and sodas lee should buy to maximize her total utility?
1. Calculate the marginal utility per dollar for sodas.
4. Assume that the following graph show the indifference curve and budget line for a consumer who is choosing between "all other items" and "hand sanitizer". All other items A Hand sanitizer We know that the preferences and demand for hand sanitizer increased dramatically starting in mid-March 2020 due to the coronavirus pandemic. How would you show a change in preferences for hand sanitizer on the graph given above? Would the budget line change, or would the position of the indifference curve change? You may assume that income and prices of all other items and hand sanitizers did not change. Please give an explanation and show the changes on the graph.
Question 25 Burritos 9 8 16500 7 4 321 1 2 3 4 5 10 7 Salads The graph shown represents Sophia's budget constraint. If the price of salads is $5, what is Sophia's budget? O $25 O $5 This question cannot be answered without more information. $40

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