A person in an economy in which they only consumetwo commodities, coffee and cake. This person always consumes thesecommodities together in a fixed ratio; whenever they drink a cup of coffee, they eat a single cake.This person has a budget of £99 to spend on coffee and cake.a. Draw a single diagram showing the relevant indifference curves and budgetlines for this person to show their optimal consumption bundle for the threedifferent examples of prices for coffee and cake listed below. Put thequantity of coffee on the horizontal axis of your diagram. Fully label yourdiagram, identifying the quantities of coffee and cake for the three optimalconsumption bundles. i. Price of coffee is £2 and the price of a cake is £1 ii. Price of coffee is £8 and the price of a cake is £1 iii. Price of coffee is £10 and the price of a cake is £1

Q: Mrs. Rochester earns $4500 a week and spends her entire income on computers and pastries, since…

A: a )  Mrs. Rochester insist that for every computers she buys, she must also buys a pastry's. This…

Q: Centa spends $56 a month at allthemovies.com on film-noir (FN) and sci‑fi (SF) movies, which…

A: A budget constraint refers to the different combinations of two goods that a consumer can afford…

Q: DVDs (per month) 10- 4 3- 2- 0 3 1 -2 A 3 4 5 6 7 Books (per month) 8 9 10

A: In the question above, it is given a plotted diagram of a single bundle of 2 books and 3 DVDs…

Q: iuppose that Isaiah has a weekly fixed budget and spends it all on haircuts and ice cream. At his…

A: Marginal utility  Marginal utility is the happiness a consumer gains from having one more unit of an…

Q: Livi consumes both sushi (s) and green tea (t).  The following table shows her marginal utility…

A: The utility is the amount derived by consuming a product, which can satisfy human wants.Although the…

Q: Antonio buys five new college textbooks during his first year at school at a cost of ​$80 each. Used…

A:

Q: 3. Finding the optimal combination of two goods - $2. Suppose that Larry buys Larry enjoys consuming…

A: Marginal utility is the additional utility that a consumer derives while consuming an additional…

Q: Kai’s current marginal utility from consuming orange juice is 50 utils per ounce and her marginal…

A: The Law of Equi-Marginal Utility, also known as the Law of Diminishing Marginal Utility, states that…

Q: Suppose that Dale consumes only coffee and cheese, both of which have diminishing marginal utility.…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: Mattie consumes milk and cookies. Assume Mattie has a strictly diminishing marginal rate of…

A: Utility refers that the wants satisfying power of any commodity , diminishing marginal rate of…

Q: Nadia likes spare ribs, R, and fried chicken, C. Her utility function is U=10R²C. Her weekly income…

A: Nadia likes spare ribs, R, and Fried chicken, C. Her utility function is U(R,C) = 10R2C Her weekly…

Q: Annie's current level of consumption, let MUp denote Annie's marginal utility from an additional…

A: Marginal utility (MU) is a concept in economics that implies the additional satisfaction or benefit…

Q: Currently, Paula is maximizing utility by purchasing five TV dinners (T) and four Lean Cuisine Meals…

A: A budget constraint is a fundamental concept in economics that represents the limitations imposed on…

Q: 1. Doug consumes two goods, electricity, e, and a composite commodity z. Doug has the following…

A: Utility function : U = z2 e  Optimal point of consumption is achieved where the marginal rate of…

Q: Jane is your typical economics student who consumes two goods: economics textbook and coffee. Jane’s…

A: Given: J's income = $40 Consumes two goods only. When she spends her entire income on books she will…

Q: Suppose that Lynn enjoys sugar in her coffee.  She has very particular preferences, and she must…

A:

Q: hich of the following statements is likely to be true about total utility as consumption increases?…

A: The consumption of any good follows the law of diminishing marginal utility. It means that as the…

Q: Based on the utility maximizing rule, Is Angel maximizing their utility? OYes ONO ONot enough…

A: Utility maximisation level is the point where slope of Indifference curve is equal to the slope of…

Q: In a simple but delicious world, Joey eats only sandwiches, s, and jam, j. He has a Cobb-Douglas…

A: a. Since N>0, for any N in that, the order of the bundles will be preserved. That mean if…

Q: Jill likes to consume coffee and cream in a very particular way: with every cup of coffee she…

A: Jill is a utility maximizer. She decides to spend her income is $120 per month on coffee and cream.…

Q: Reid has the following utility function. U = 24m1/3d1/2  where U is Reid's total utility, m is the…

A: (a) U = 24m 1/3 d 1/2 – α (m+0.6 d -25) MU m = 1/3*24m-2/3 d 1/2 – α*1 MU d= ½ *24 m 1/3 d-1/2 -…

Q: Ann consumes only cookies and muffins. At her current consumption bundle, her marginal utility from…

A: A buyer optimizes his/her utility measured in utils when the ratio of marginal utility of last unit…

Q: Cathy has $240 to spend on cherry and/or coconuts. Suppose you have drawn her budget line for cherry…

A: Budget line shows different combinations of two goods that can be bought with the given level of…

Q: Suppose that you have highly nonconvex preferences for ice cream and olives, like those given in the…

A: Preferences of a consumer is an important part to know the choices made by the consumer of a good.…

Q: Write out the standard form of a budget constraint (meaning only with variables, no numbers). Then,…

A: The budget constraints represent all possible combinations of consumer goods that a consumer can buy…

Q: Assume that Sophia has $1000 per month to spend between dinners at a Thairestaurant and evenings at…

A: Please refer the explanation part for the diagrams.Explanation: Given information: price of MECA is…

Q: Suppose that Joe consumes cupcakes and pizzas. The price of cupcakes is $5 per unit and the price of…

A: The utility function for a typical household assesses the contentment or welfare received from…

Q: 7. Bob receives utility from days spent traveling on vacation domestically (D) and days spent…

A: Utility:The utility is want satisfying power of a commodity. It can be expressed in cardinal and…

Q: Why is the consumer’s MRS equal to the price ratio at the optimal consumption point? Give a…

A: Answer: A consumer maximizes his/her utility where the indifference curve is tangent to the budget…

Q: Carol needs to decide how to spend her wealth on  sh and chicken. For Carol, 1 lb of  sh is…

A:

Q: may explain to me step by step? tq 1. An individual consumes products X and Y and spends $25 per…

A: Budget equation: - it is the mathematical expression that represents a consumer’s affordable bundles…

Q: Maya divides her income between coffee and croissants (both of which are normal goods). An early…

A: There are primarily two types of products: inferior goods and normal goods. The inferior goods are…

Q: 1. Suppose Frank enjoys traveling and his utility is a function of the number of airplane trips he…

A: The objective of the question is to understand Frank's budget line and indifference curve based on…

Q: price or cheese is is treated as a composite good representing dollars spent on other consumption.…

A: Luxury Goods and Normal Goods  Individuals spend a greater extent of their income on Luxury…

Q: Draw YOUR indifference curve for the consumption of two goods (you pick the goods – be creative!)…

A: A consumer is a rational person who wants to gain the maximum satisfaction level from paying the…

Q: Suppose Frank enjoys traveling and his utility is a function of the number of airplane trips he…

A: ***Since the student has posted multiple questions, the expert is required to solve only the first…

Q: Saima works as a free-lance worker at a software house in Rawalpindi. Suppose she keeps awake for…

A: The optimum level of consumption and leisure hours occurs at the point where the slope of budget…

Q: Antonio buys five new college textbooks during his first year at school at a cost of $80 each. Used…

A: Purchasing power:Purchasing power is the ability of an individual or entity to buy goods and…

Q: Consider a local department store which only sells jeans (J) and sweaters (S). Jeans cost $30and…

A: The budget constraint is typically represented graphically as a line or curve that shows the…

Q: A consumer is making purchases of products Alpha and Beta such that the marginal utility of product…

A: The Equilibrium condition for utility maximization: MUa/Pa = MUb/Pb The marginal utilities per…

Q: The graph of the budget line below has dollars on the vertical axis and food on the horizontal axis.…

A: Budget line is the representation of the budget sets which represents all the combinations of goods…

Q: Carol needs to decide how to spend her wealth on  sh and chicken. For Carol, 1 lb of  sh is…

A:

Q: 1. In a simple but delicious world, Joey eats only sandwiches, s, and jam, j. He has a Cobb-Douglas…

A: Since we answer a maximum of 3 subparts, a-c will be answered here. Please reupload the question…

Q: Bruno can spend his income on two different goods: smoothies and energy bars. For each of the…

A: Budget line shows the different combination of goods which can be bought by given level of income…