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Q: 2. Shifts in a budget constraint Nick brings $25 to a baseball game to spend on sodas and pizza. The…
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A: * SOLUTION :- *(2)
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A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
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- 7. Changes in incentives Suppose the large number of bike accidents in a small town results in new legislation that requires all citizens of the town to wear specialized bike helmets when riding. These new helmets reduce the probability of head trauma by 25% during a bike accident. While the new helmets the probability of a serious head injury resulting from a bike accident, they also incentivize cyclists to ride safely, which could the number of bike accidents and thus head injuries to cyclists.Question 6 Burritos 9 8 7 6 5 4 3 2 1 1 3 4 5 6 7 Assume Kerri's budget constraint is represented in the graph shown. If Kerri's income to spend on these two items increases, her budget constraint will: shift in, maintaining the same slope. shift out and become flatter. shift out and become steeper. shift out, maintaining the same slope. OOOO Salads 22. Utility maximization - Trading off labor and leisure The indifference curves on the following graph show Amy's preferences for leisure and consumption for increasing levels of utility, such that her utility increases in both consumption and leisure. Assuming that Amy spends 68 hours each week sleeping, she has a maximum of 100 hours available to her for leisure if she does not work at all. Initially, she works 45 hours (and thus has 55 hours of leisure) and earns $250 per week. Use the grey point (star symbol) to indicate Amy's initial leisure/consumption bundle. Dashed drop lines will automatically extend to both axes. ? CONSUMPTION (Dollars per week) 1000 900 800 700 600 500 400 300 200 100 0 0 10 20 30 40 50 60 70 80 LEISURE (Hours per week) 90 100 110 Initial bundle $200 Unemployment Benefits Equivalent Bundle, $100 Unemployment Benefits Equivalent Bundle Now, suppose that Amy is laid off, but she is eligible to collect unemployment benefits of $200 per week. Use the black point…
- 34. Mohamed can buy either pizza or soda. If the price of pizza and soda doubles, and 30 does Mohamed's money income for that month. We can deduce that Mohamed's budget constraint for that month will: Remain unchanged. Shift in but remain parallel to the old one. c. Shift out but remain parallel to the old one. d. Tilt in so that the slope of the budget constraint is doubled.Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVS) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is $300,000. ATVS cost $6,000 each and snowmobiles cost $15,000 each. a. Draw the budget line for your purchase of new vehicles. Use the line drawing tool to draw a budget line. Properly label this line. Place end points one on horizontal and one on vertical axes. Carefully follow the instructions above, and only draw the required objects.Question 3 Sam is interested in buying two types of goods, x and y. He can either use all his income to buy 3 units of x and 9 units of y, or 9 units of x and 3 units of y. If he spends all his income on x, how many units can he buy?
- Also calculate monthly budget. Thanks!Garfield enjoys pizzas and hanging out (leisure). He sleeps 8 hours per day. Of the remaining16 hours, for each hour he chooses to work he gets paid 2 pizzas. Garfield must pay 6 pizzas intaxes but receives dividends equivalent to 6 pizzas.1. Draw Garfield’s budget constraint (put consumption on the vertical axis and leisure of thehorizontal). Make sure to show the vertical and horizontal intercepts as well as the slope.b. Now suppose that Garfield chooses to work 10 hours per day. Find how many hoursof leisure and how many pizzas he will consume.c. Using your answer from b, show Garfield’s optimal point on the budget line and drawthe indifference curve passing from that point.4. Suppose that Garfield’s wage falls to 1 pizza per hour. Draw Garfield’s new budgetconstraint. Make sure to show the value of any intercept that has changed.5. Suppose that in response, Garfield decides to work for 6 hours per day. How much leisurewill he take, and how much pizza will he consume?6. Use an…4. Graph the budget line for each of the following circumstances. a. Consider Bobby's choice between watching movies on Netflix and all other consumption goods. Movies cost $5 to watch on Netflix. Bobby has cash income of $60 and a $20 Netflix gift card, which cannot be resold and must be used entirely during the current period. (Graph movies vs. money spent on all other goods here.) b. Monica purchases food and clothes and works at a clothing store. Her income is $300, the price of food is $10, and the price of clothes is $50. Monica receives an employee discount of the following form: She gets 50% off the price of all clothes items after purchasing 2 at the regular price.
- need quality answer Nuoya has $256 to spend on cherry and/or coconuts. The price of cherry is $12/kg and the price of coconuts is $17/kg. What is the slope of her budget line, if cherry is on the horizontal axis and coconuts are on the vertical axis? Round your answer to two decimal places, if necessary. Hint: is slope positive or negative?2. David gets $3 per week as an allowance to spend any way he pleases. Since he likes only peanut butter and jelly sandwiches, he spends the entire amount on peanut butter (at $0.05 per ounce) and jelly (at $0.1 per ounce). Bread is provided free of charge by a concerned neighbor. David is a picky eater and makes his sandwiches with exactly 1 ounce of jelly and 2 ounces of peanut butter. He is set in his ways and will never change these proportions. a) How much peanut and jelly will David buy with his $3 allowance per week? b) Suppose the price of jelly increases to $0.15 per ounce. How much of each commodity would be bought? c) By how much should David's allowance be increased to compensate for the rise in the price of jelly in part b? d) Graph your results of part a through part c.Assume that John has RO 21 to spend on Energy drink and Protein bars each month and that both goods must be purchased whole (no fractional units). Energy drink (X) cost RO 3 and Protein bars (Y) cost RO 2 each. John’s preferences for movies and books are summarized by the following information: No. per Month Energy drink No. per Month Protein bars TU MU MU/Px TU MU MU/Py 1 84 1 36 2 156 2 66 3 216 3 90 4 264 4 108 5 300 5 120 6 324 6 126 7 336 7 126 Fill in the figures for marginal utility of X and marginal utility of Y per dollar for both movies and books. Are these preferences consistent with the law of diminishing marginal utility? Explain briefly. Given the budget of RO 21, what quantity of Energy drink (X) and what quantity of Protein bars (Y) will maximize John’s…
