Assume the following is the Budget Equation for a consumer: 112 Vodka + 80 Rum = 3991 What would be the intercept of the budget line in the Rum axis? Add your answer Question 2 If the budget line equation is x2 = - 118/93 x₁ + 17305/93 What is the income of the consumer? Add your answer 10 Points Question 3 10 Points Harrison spends all of his income on vacation trips and textbooks. If the price of a trip is $117 and the price of a textbook is $84, then the slope of his budget line (assuming vacation trips are measured on the vertical axis) would be Add your answer

Assume the following is the Budget Equation for a consumer: 112 Vodka + 80 Rum = 3991 What would be the intercept of the budget line in the Rum axis? Add your answer Question 2 If the budget line equation is x2 = - 118/93 x₁ + 17305/93 What is the income of the consumer? Add your answer 10 Points Question 3 10 Points Harrison spends all of his income on vacation trips and textbooks. If the price of a trip is $117 and the price of a textbook is $84, then the slope of his budget line (assuming vacation trips are measured on the vertical axis) would be Add your answer

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter7: Consumer Choice And Elasticity

Section: Chapter Questions

Problem 4CQ

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Similar questions

Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
Is it possible for total utility to increase while marginal utility diminishes? Explain.
If people do not have a complete mental picture of total utility for every level of consumption, how can they find their utility-maximizing consumption choice?
Would you expect total utility to rise or fall with additional consumption of a good? Why?
Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.