Bob goes to the supermarket to buy milk and cereal. He has $20 to spend. A consumption bundle consists of a quantity of milk, x (liters), and a quantity of cereal, y (grams). For all of the following questions you can assume that the consumption set is R2+. This means that milk and cereal can be consumed in any non-negative quantity. (a) The price of milk at the supermarket is px = 4$/liter. The price of cereal is 0.2cents/gram. Draw Bob's budget set. What is the slope of the budget line? (b) Bob notices that the supermarket has a special coupon. A coupon states: "Buy 1 liter of milk and get 1 box of cereal for free". A box of cereal has 2000 grams of cereal in it. Each shopper is limited to one coupon. Draw Bob's budget set with 1 coupon. (Hint: Be careful with units again).   (c) Due to popular demand, the supermarket extends its special offer. Each customer is now allowed to use 2 coupons. Draw Bob's budget set with 2 coupons

1. Doug consumes two goods, electricity, e, and a composite commodity z. Doug has the following utility function: U = z²-e Last week, he clicked on a Facebook ad and got free solar panels put on his roof! Now Doug has solar panels on his roof that generate 50 units of electricity per day. For the going price of electricity, if Doug demands more than 50 units of electricity, he can buy more at that price. If he demands less than 50 units, he can sell the extra electricity (50 - his consumption) back to the grid, and earn the going price as extra income. a. What are his Marshallian demand functions for e and z? b. Currently, Doug's income is $100 per day, the price of z is $1 and the price of electricity is $0.50. How much electricity is he consuming and what is his utility? (note, the utility numbers may get a bit large). C Calculate quantity demanded for electricity and his utility if the price of electricity rises to $1. And then calculate the quantity demanded and utility when the…

Suppose you have $100 to spend on Skittles and M&Ms. The price of Skittles is $5.00 and the price of M&Msis $1.00.(a) Write the budget constraint and draw the budget constraint on a graph that has M&Ms on the verticalaxis. (b) Assuming you spend all of your money on skittles and M&Ms. If you bought 10 M&Ms how manySkittles did you purchase? (c) Suppose the price of skittles increases from $5.00 to $6.00. Rewrite the budget constrain and draw thenew budget line, including and indicating intercepts and the slopes. (d) Suppose the price of Skittles drops from $5.00 to $1.00. You are limited to only a maximum of 75skittles. Draw this new budget constraint on the same graph from your answers in part (a) and (c).

* Would you expect marginal utility to rise or fall with additional consumptionof a good? Why? * Tarik consumes bread and sausages. He has decided that his monthly budgetwill be $1400. Suppose that one bread costs $35, while one sausage costs $40.i. What is the expression for Tarik’s budget constraint? ii. Draw a graph of Tarik’s budget line (bread on the y axis). iii. Show how Tarik’s budget line changes if the price of sausages increasesto $55. iv. Suppose Tarik decides to cut his monthly budget in half. Coincidentally,the next time he shops, he learns that bread and sausages are on sale forquarter of the price. Show what happens to Tarik’s budget line?

Monica likes to spend 30 dollars weekly on movies and burgers movie ticket costs 6 dollar each and burger cost 3 dollar each? 1. What is the maximum number of burgers she can have in a week given her budget of 30 dollar? 2. Draw monica s budget constraint line using the horizontal axis to represent the quantity of movie tickets and the vertical axis to represent the quantity of burgers. Be sure to compute and show the x and y intercepts. What is the slope of the budget constraint line you have drawn?

Suppose that Joe consumes cupcakes and pizzas. The price of cupcakes is $5 per unit and the price of pizzas is $10 per unit. The table shows Joe's utility from the consumption of each good; each row represents a possible consumption bundle. Currently, Joe is consuming 18 cupcakes and 9 pizzas. A Quantity of cupcakes 10 12 14 16 18 20 22 24 26 Utility of cupcakes (utils) 50.00 68.30 81.00 89.00 93.70 96.40 97.74 98.20 98.56 Q of pizzas 5 13 12 11 10 8 7 6 9 Utility of pizzas (utils) 263.00 258.00 250.00 240.00 227.00 212.00 195.00 175.00 150.00 Show Transcribed Text n a. Calculate the marginal utility per dollar of going from eight to nine pizzas. b. To increase total utility without increasing spending, should Joe change the amount of consumption of either good? OYes, Joe should choose more cupcakes and fewer pizzas. O Yes, Joe should choose more cupcakes and more pizzas. O No, Joe is already consuming at the optimal consumption bundle. O Yes, Joe should choose fewer cupcakes and more…

The budget set, or budget constraint, in the graph shows the possible combinations of brownies and ice cream cones that can be purchased. Assume that this person has a total of $18 to spend on brownies and ice cream cones.   How much does a brownie cost? $     Assume that at point A, the marginal utility from a brownie is 10 and the marginal utility for an ice cream cone is 18. This person should consume more brownies and fewer ice cream cones. is utility maximizing. should consume more ice cream cones and fewer brownies.

Give typing answer with explanation and conclusion  Suppose that a consumer's utility function is U=x^5*y^3*z^3, where x is the consumption of mineral water, y is the consumption of soda and z is the consumption of pizza. The consumer has 2000 Euros while the price of mineral water is 15, the price of soda is 55 and the price of pizza is 30 Euros. How much/many soda does the consumer buy?

PLEASE HELP ME ANSWER IT AS FAST AS YOU CAN   Hanan consumes two fruits: bananas (B) and apples (A). She has decided that her monthly budget for fruit will be 25 KD. Suppose that one banana costs 0.25 KD (250 Fils), while one apple costs 0.10 KD (100 Fils). a. State Hanan’s budget constraint. b. Draw a graph of Hanan’s budget line. Place the number of units of bananas on the vertical axis and the number of units of apples on the horizontal axis. c. Show graphically how Hanan’s budget line changes under the following scenarios:i. If the price of apples increases to 0.20 KD (200 Fils).ii. If the price of bananas decreases to 0.05 KD (50 Fils). iii. If her income increases to 50 KD.iv. If Hanan decides to cut her monthly budget for fruit in half and notices that bananas and apples are on sale for half price.

Suppose utility can be measured by "utils" and that Jim buys both coffee and bagels. The price of coffee is $2 and the price of a bagel is $3. If Jim is currently consuming coffee and bagels such that the marginal utility from the last cup of coffee consumed was 6 utils and the marginal utility from the last bagel consumed was 12 utils, is Jim maximizing utility? Why or why not? If not, what should Jim do? Explain in detail.