2. Gorgeousleny purchased a combination of 15 breads and 5 juices with her income of P150 andprice of bread is P6 and price of juice is P12. She proudly showed this to her mom, and to herdismay her mom said that she likes more juices than bread since its summer season. While on herway home she lost the receipt, but fortunately she can still receive store credit based from the totalvalue of products. While approaching the customer service representative , she thought of thiswhat if she sticks with her original plan of buying bread alone with no juice and vice versa. At themoment all juices in the store is 50% off. Draw the graph showing the budget constraints arisefrom endowments.a. ) Measure the qty. of bread on the vertical axis and the qty. of juice on the horizontal axis. Labelboth graph with its corresponding points, pt. A for bread and point B for juice. the combination ofbread and juice label it as point C.b.) For both graph, What is the slope from point C to point B? ; What is the slope from from pointA to point C?

Given , Price of bread = 6 Price of juice = 12 Initially she buy 15 breads and 5 juices But now ,…

Answered: 2. Gorgeousleny purchased a combination…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Also calculate monthly budget. Thanks!
1. Carefully explain how consumers maximize utility of all the products they could possibly purchase.
For each example listed, decide if the good is a normal good or an inferior good. Make sure you answer from the perspective of the individual or individuals doing the buying or consuming. Billy's mom increases his weekly allowance by %5. As a result, Billy increases the number of apps he downloads on his smartphone. Smartphone apps are
rom California to New York, legislative bodies across the United States are considering eliminating orreducing the surcharges banks impose on non-customers, who make $14 million in withdrawals from otherbanks’ ATM machines. On average, non-customers earn a wage of $26 per hour and pay ATM fees of $3.25per transaction. It is estimated that banks would be willing to maintain services for 6 million transactionsat $1.50 per transaction, while non-customers would attempt to conduct 22 million transactions at thatprice. Estimates suggest that, for every 1 million gap between the desired and available transactions, atypical consumer will have to spend an extra minutes traveling to another machine to withdraw cash.(a) Based on this information, what would be the nonpecuniary cost of legislation that would place a$1.50 cap on the fees banks charge for non-customer transactions?(b) What would be the full economic price of this legislation?(c) Using a graph, illustrate the situation described…
3. Based on each scenario in this question, indicate whether the following statements is true or false, and briefly explain your reasoning. You may also want to use a graph in your explanation if you think it's necessary. a) Mike makes $500 per week and spends all her income on books and tea. Books cost $25 each, and Mike buys 16 each week. Tea costs $5 per cup, and Mike buys 20 cups. When Mike's income falls to $450 per week, he cuts his consumption of books by 3 books and purchases 5 more cups of tea. Based on Mike's consumption behaviors, books are an inferior good and Tea is a normal good. b) Lucy consumes food and clothing. For incomes near her current income, her income expansion path is negatively sloped. Assume that food is measured along the horizontal axis and clothing is measured along the vertical axis. Therefore, at current income levels, both food and clothing must be inferior good. c) For any normal goods, the income and substitution effects work in the same direction.…
6 (i) FIGURE 6 (i) 22 18 10 1 2 3 Number of video games rented per month 4 All the questions below are referring to Figure 6 (i) and explain and show your computation in your answer. a) The marginal utility of the first video game rental is b) The marginal utility of the third video game rental is c) At which unit of video game, the marginal utility is zero. Total utility
4
4. Kay lives in a city where housing costs $1 per square foot. They have a monthly budget of$1,000, of which they decide to allocate $500 to rent a 500 sqft. apartment and spend teother $500 on consumption. A generous relative offers Kay a deal on a 400 sqft. apartmentfor only $200 per month, which they accept. What is the equivalent variation of this transferfor Kay, in dollars per month? (Select one)(a) More than $300: Kay gets utility from both consumption and the new apartment.(b) $300: That is how much more Kay can consume with the new cost of rent.(c) $250: That is how much less Kay’s old bundle would have cost at the new prices.(d) Between $0 and $250: Kay would substitute away from her old bundle at the new prices.(e) $200: That is the additional cost of Kay’s new bundle at the old prices.(f) Between $0 and $200: Kay may prefer to substitute away from her new bundle at theold prices.(g) $100: That is the differential cost of the new apartment at the old prices.(h) $0: The new…
Do all parts
1. Complete the following table and answer the questions below: Units consumed Total utility Marginal utility 1 10 10 2 8. 25 4 30 5 6. 34 2. Columns 1 through 4 in the table below show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are P18, 6, 4, and 24, respectively, and that Ricardo has an income of 106. Column 1 Column 2 Column 3 Column 4 Column 5 Unit Unit Unit Unit No. of MU MU MU MU P saved MU of A of B of C of D || || || || | 1 72 1 24 1 15 1 36 1 2 54 2 15 12 2 30 2 3 45 3 12 8 3 24 3 36 4 18 2 27 5 7 5 13 5 1 18 6. 7 6. 1/2 7 15 7 7 3.5 7 4 7 1/4 8 12 8. 1 8 2 8. 1/8 a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? b. How many pesos will Ricardo choose to save?
Typed and correct answer please. I will ra
4. Reid earns $14 per hour and works 44 hours per week. If he does not want to spend more than 30% of his income on rent, what is the maximum monthly rent that he can afford? Assume a 4-pay month.

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