0.13KB/SVo9:43 Jתיוו |lוי ח:הוAssignment 2Principles of Microeconomics1. 1. Rummy has $40 a week to spendon burger and cake. The price ofburger is $5 and the price of cake is$2 a slice.а.Calculate Rummy's real income interms of cake.b. Calculate the relative price of cakein terms of burger.Calculate the equation for Amy'sbudget line.If Rummy's income increases to$60 a week and the price of burgerС.d.and cake remainunchangeddescribe the change of his budgetline.If the price of cake doubles whilethe price of burger remains at $5and Rummy's income remains at$40 describe the change in hisbudget line.е.f. If Rummy's income is $20 and allthe money spend to purchaseburger, how many burger he canpurchase?

Rummy has $40 a week to spend on burger and cake. The price of burger is $5 and the price of cake is…

Answered: Calculate Rummy's real income in а.…

Calculate Rummy's real income in а. terms of cake. Calculate the relative price of cake in terms of burger. Calculate the equation for Amy's b. С. budget linę,

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Revealed Preferences and Budget Constraint Analysis

Revealed means “Let Out,” and Preference means “Choice”; Choice Reveals Preference.

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0.13
KB/S
Vo
9:43 J
תיוו |lוי ח:הו
Assignment 2
Principles of Microeconomics
1. 1. Rummy has $40 a week to spend
on burger and cake. The price of
burger is $5 and the price of cake is
$2 a slice.
а.
Calculate Rummy's real income in
terms of cake.
b. Calculate the relative price of cake
in terms of burger.
Calculate the equation for Amy's
budget line.
If Rummy's income increases to
$60 a week and the price of burger
С.
d.
and cake remain
unchanged
describe the change of his budget
line.
If the price of cake doubles while
the price of burger remains at $5
and Rummy's income remains at
$40 describe the change in his
budget line.
е.
f. If Rummy's income is $20 and all
the money spend to purchase
burger, how many burger he can
purchase?

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