Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. For this consumer, the opportunity cost of buying one more apple is 0.5 of a banana.   0.8 of a banana.   1 banana.   2 bananas.

Q: Refer to the budget line shown in the diagram below. If the consumer's money income is $20, the: 10…

A: Given: Consumer income=$20 Quantity of D=10 Quantity of C=5 To find: Prices of C and D.

Q: 1. X1 and x2. The price of x, is $80 per unit and the price of x2 is $40 per unit; x1 and x2 are…

A: Disclaimer :- As you posted multipart questions we are supposed to solve the first 3 questions only…

Q: The table below shows the marginal benefit, in dollars, that Kareem derives from consuming two…

A: Hi! Thank you for the question but as per the guidelines, we can only answer three sub-parts of a…

Q: The following table depicts a consumer's utility from consuming two goods, Fish and Chips. Units of…

A: Total utility refers to the satisfaction that a consumer attains for consuming a good or service.…

Q: #16. Joanna is deciding between consuming Good X and Good Y. At her current level of consumption,…

A: Joanna is deciding between consuming good X and good Y. At her current level of consumption, her…

Q: The graph shows the budget line for a consumer who only buys cookies and magazines. If the…

A: Budget line is the graphical representation of different combinations of two goods that a consumer…

Q: Question 3: Samantha has $3,000 to spend on two goods: sandwiches and beer. The price of a sandwich…

A:

Q: Scruffie the cat has $15 to spend each month on cat toys, which cost $3 each, and cat treats, which…

A: The linear representation of a budget constraint is known as a budget line. The budget constraint…

Q: A consumer is choosing between magazines an His optimums are shown on the graph to the right.…

A: Since PCC is horizontal, it means that change in price of books does not change demand for…

Q: . Suppose you earn $1500 per week and you consume only two types of goods per week- sandwiches and…

A: The money income is given as $1500 The following table shows the combinations of both the goods…

Q: ob can buy two kinds of goods, food and clothing. He earns £400 per week. Food items cost £4 each,…

A: Budget line is a graph that depicts thee possible combinations of two goods or services that a…

Q: Mauricio has a circus act that involves monkeys on unicycles. Mauricio has a fixed amount to spend…

A: Budget constraints shows the relationship between the two goods, their prices and the income of…

Q: The table shows Jerry's total utility from lottery tickets and candy bars. The price of a lottery…

A: Marginal utility measures the change in total utility to the change in quantity consumed.  i.e.,…

Q: Ramona is an asparagus farmer and the world asparagus market is perfectly competitive. The market…

A: Since you have posted multiple questions, we will solve the first question for you. If you want any…

Q: Sam likes Pepsi (P) twice as much as he likes Coke (C). Assume the price of Pepsi is $3 and the…

A: Budget constraint shows different combinations of two goods that a consumer can afford with the…

Q: If at a quantity consumed of 1 unit, total utility equals 25 and marginal utility equals 25, and at…

A: Given  Total Utility when 1 unit is consumed TU(1)=25 Marginal utility of second unit MU(2)=20 Total…

Q: Marie has a weekly budget of $24, which she likes to spend on magazines and pies. Calculate: a) If…

A: Note: There are multiple sub parts in the question. Therefore, we shall solve the first three for…

Q: If the price of a slice of cake is $4, the price of a slice of pie is $2, and Latasha spends her…

A: The total number of products that one can buy within the  current budget is the budget constraint.…

Q: Caroline has a $10 dessert budget that she uses to buy pie and cake. Assume the price of pie (Pp) is…

A: If the price of the slice of cake is $4....., she will choose to buy 3 slices of pie and 1 slice of…

Q: True or false.  A budget constraint, budget line or budget set is a graphical way to illustrate all…

A: It's vital to remember that the slope of the budget line equals the cost ratio of two commodities.…

Q: Aidan has saved up $80 to spend on toys (T) and candy (C). The price of toys is $20, and the price…

A: Budget Line: given the price of 2 goods and consumer’s income. The budget line shows different…

Q: Suppose the price of a soda is $2 each, the price of a hot dog is $3 each and the budget is $20. If…

A: Given information: Price of soda (PS) = $2 Marginal utility of 4th soda (MUS) = 100 Price of hot dog…

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.