Answer the question based on the following graph. Which of the following statements is entirely correct? Tom's monthly budget constraint 40 A E 20 Number of hamburgers per month O Point E is unattainable and Point D is inefficient. O Both point D and E are unattainable. O Point E is inefficient and Point D is unattainable. O Point A is inefficient and Point E is unattainable. Number of hot dogs per month

Answer the question based on the following graph. Which of the following statements is entirely correct? Tom's monthly budget constraint 40 A E 20 Number of hamburgers per month O Point E is unattainable and Point D is inefficient. O Both point D and E are unattainable. O Point E is inefficient and Point D is unattainable. O Point A is inefficient and Point E is unattainable. Number of hot dogs per month

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

When deciding which goods to consume, you should choose to consume the good with the highest marginal utility per dollar. O False, you should choose a combination of goods with equal marginal utility per dollar. O True, consumers are maximizing marginal utility and should always choose the highest amount per dollar. O False, you should buy the cheapest good to get a higher level of total utility. True, with diminishing marginal returns consuming more goods will reduce the marginal utility per dollar.
6) A consumer has to choose the optimal number of slices of pizza and bottles of water to purchase. Which of the following is not a necessary condition for his or her chosen consumption bundle to be optimal? OOO His or her budget constraint has to hold. Marginal utility (MU) on the two goods has to be the same. Marginal utility per dollar spent on the two goods has to be equal. The total he or she spends on slices of pizza plus the total he or she spends on bottles of water must be lower than or equal to the total amount he or she has allocated to spend on these two goods.
18) Joe's budget constraint equals 500 = 2F + 100S, where $500 is Joe's income, $2 is theprice of food (F, y-axis) and $100 is the price of shelter (S, x-axis). How much food canJoe buy if he buys one unit of shelter?A) 2 unitsB) 200 unitsC) 250 unitsD) 400 unitsE) 300 units
Suppose Monty has $60 to spend on treats (x) and toys (y). The price of toys is p, = $2 and the price of treats is p, = $1. Monty's utity functon for toys and treats is uộx y)=2. Answer the following questons about Monty's de du that du and dy 1) The equation for Monty's budget constraint can be written as O A. 30-zx=y OC. Bx+ 10y = 300 OD. All other choices are correct 2) Suppose Monty consumes x=16 and ym4. Monty's marginal utility for x at thes90 values is MU, = O Monty's marginal utility fr y at these values is MU, =0
Steve allocates his budget of $24 per week among three goods. Use the following table of the marginal utilities for Good A, Good B, and Good C to answer the questions below: Q(A) MU(A) Q(B) MU(B) Q(C) MU(C) 1 50 1 75 1 25 2 40 2 60 2 20 3 30 3 40 3 15 4 20 4 30 4 10 5 15 5 20 5 7.5 If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each will Daniel purchase in equilibrium? If the price of A rises to $4 while the other prices and Daniel's budget remain unchanged, how much of each will he purchase in equilibrium?
Good X A B IC2 ICG Good Y The rotation of the budget line from red to blue depicts an increase in monetary income. The rotation of the budget line from red to blue depicts a decrease in monetary income. O The rotation of the budget line from red to blue depicts an increase in the price of X. O The rotation of the budget line from red to blue depicts an increase in the price of Y. O The rotation of the budget line from red to blue depicts an decrease in the price of X. O The rotation of the budget line from red to blue depicts an decrease in the price of Y. After the budget line rotates from red to blue, the amount of X consumed will increase. After the budget line rotates from red to blue, the amount of Y consumed will increase. O After the budget line rotates from red to blue, the amount of Y consumed will decrease. O After the budget line rotates from red to blue, the amount of X consumed will decrease. O After the budget line rotates from red to blue, the person will move from A to…
Analyze and define the diagram
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
5. Suppose that by some miracle the number of hours in the day increased from 24 to 30 hours (with luck this would happen shortly before exam week). How would this affect the budget constraint?
Use this information to answer the following 4 questions: Marie has a weekly budget of $24,which she likes to spend on magazines and pies.24. If the price of a magazine is $4 each, what is the maximum number of magazines she couldbuy in a week?25. If the price of a pie is $12, what is the maximum number of pies she could buy in a week?26. Draw Marie’s budget constraint with pies on the horizontal axis and magazines on thevertical axis. What is the slope of the budget constraint?27. What is Marie’s opportunity cost of purchasing a pie? I need help with number 26 and 27.
Graham brings $20 to his local college hockey game in order to purchase cheeseburgers and seltzer. The following diagram presents his budget constraint: CANS OF SELTZER 10 6 B 5 4 3 r 0 1 2 BC 4 5 6 CHEESEBURGERS 7 According to the diagram, cheeseburgers cost $ 8 9 10 BC each, and seltzer costs $ (?) per can. Adjust the diagram to show how Graham's budget constraint would change if the price of seltzer decreased. (Assume the price of cheeseburgers and Graham's income remain the same.) Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.
Name: Maximizing Utility The following table shows represents the utility received by Sharon for cookies and pretzels. Fill in the missing data. Total Marginal Utility Utility # of pretzels # of Marginal Utility Utility Total cookies --- --- 1 20 1 12 2 10 2 8 3 5 3 4 4 4 5 32 5 20 28 -10 Use the above completed table to answer the folloiwng questions. If your budget is $ 5.00 and both cookies and pretxels cost $1.00 each, how many cookies and pretzels will you buy to maximize your utility? а. What will your total utility be?