Clancy brings $50 to a baseball game to spend on hot dogs and beer. The following diagram shows his budget constraint: 20 18 BC 16 14 12 10 4. вс 4 6 8 10 12 14 16 18 20 HOT DOGS According to the diagram, hot dogs cost $5 each, and beer costs S5 per glass. Adjust the diagram to show how Clancy's budget constraint would change if he had brought less money to the ballpark. (Assume the prices dogs and beer remain the same.) GLASSES OF BEER

Clancy brings $50 to a baseball game to spend on hot dogs and beer. The following diagram shows his budget constraint: 20 18 BC 16 14 12 10 4. вс 4 6 8 10 12 14 16 18 20 HOT DOGS According to the diagram, hot dogs cost $5 each, and beer costs S5 per glass. Adjust the diagram to show how Clancy's budget constraint would change if he had brought less money to the ballpark. (Assume the prices dogs and beer remain the same.) GLASSES OF BEER

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 12RQ: Why does a change in income cause a parallel shift in the budget constraint?

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Nick brings $25 to a baseball game to spend on hot dogs and beer. The following diagram shows his budget constraint: 10 9. ВС 8. 7 BC 1 2 3 4 5 6 7 8 9 10 HOT DOGS According to the diagram, hot dogs cost $ each, and beer costs $ per glass. Adjust the diagram to show how Nick's budget constraint would change if he had brought more money to the ballpark. (Assume the prices of hot dogs and beer 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 9, 4. 2. GLASSES OF BEER
Answer the question based on the following graph. Which of the following statements is entirely correct? Tom's monthly budget constraint 40 •D E nts 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. « Previous Next Number of hot dogs per month
2. Shifts in a budget constraint Nyheim brings $60 to his local college volleyball game in order to purchase cheeseburgers and seltzer. The following diagram presents his budget constraint: CANS OF SELTZER 30 27 24 21 18 15 12 9 6 3 0 O 0 4 + 8 BC 12 16 20 24 CHEESEBURGERS 28 32 According to the diagram, cheeseburgers cost $ 36 40 BC each, and seltzer costs $ per can. Adjust the diagram to show how Nyheim's budget constraint would change if he had brought more money to the arena. (Assume the prices of
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.
The nearby graph shows Claudia's budget constraint for purchases of shoes and purses. Claudia's monthly budget for shoes and purses is $100. Claudia's parents have told her that she has too many shoes and is not allowed to buy more than 1 pair a month. If she buys 1 pair of shoes and 1 purse, she will have $______left each month. Number of 4.5 purses 4.0 3.5 3.0 2.5 2.Q 1.5 1.0 0.5 $50 $10 O $75 $25 0 0.2 0.4 0.6 1.0 1.2 Number of pairs of shoes 0.8
7. Shifts in a budget constraint Darnell brings $30 to a basketball game to spend on hot dogs and beer. The following diagram shows his budget constraint: 20 18 BC 16 14 12 10 4 2 BC 2 4 6 8 10 12 14 16 18 20 HOT DOGS According to the diagram, hot dogs cost $ each, and beer costs $ per glass. Adjust the diagram to show how Darnell's budget constraint would change if the price of beer decreased. (Assume the price of hot dogs and Darnell's income remain the same.) GLASSES OF BEER
2. Shifts in a budget constraint Nick brings $25 to a baseball game to spend on sodas and pizza. The following diagram shows his budget constraint: SLICES OF PIZZA 10 9 8 7 CO 50 4 3 2 1 0 0 1 + 2 3 4 BC 5 SODAS According to the diagram, sodas cost $ 6 + 7 + 8 9 10 each, and pizza costs $ BC ? per slice. Adjust the diagram to show how Nick's budget constraint would change if he had brought less money to the ballpark. (Assume the prices of sodas and pizza 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.
6.5 (0) Shirley Sixpack, as you will recall, thinks that two 8-ounce ca of beer are exactly as good as one 16-ounce can of beer. Suppose th these are the only sizes of beer available to her and that she has $30 spend on beer. Suppose that an 8-ounce beer costs $.75 and a 16-our beer costs $1. On the graph below, draw Shirley's budget line in blue in and draw some of her indifference curves in red. 8-ounce cans 40 30 20 10 10 20 30 40 16-ounce cans (a) At these prices, which size can will she buy, or will she buy some of each? (b) Suppose that the price of 16-ounce beers remains $1 and the price of 8-ounce beers falls to 8.55. Will she buy more 8-ounce beers?- (c) What if the price of 8-ounce beers falls to $.40? How many 8-ounce beers will she buy then?. (d) If the price of 16-ounce beers is s1 each and if Shirley chooses some 8-ounce beers and some 16-ounce beers, what must be the price of 8-ounce beers?. (e) Now let us try to describe Shirley's demand function for 16-ounce beers as a…
Part 1: Budget Constraints Suppose you have $48 to spend on the two items in the graph below. Q books 5 3 A 1 2 4. 6 8 Q movietickets If movies cost $8, which line represents your budget constraint? [Select] If books cost $12, which line represents your budget constraint? [ Select ] Suppose your budget constraint shifts from line C to line A. What has occurred? [ Select ] Suppose your budget constraint shifts from line A to line B. What has occurred? [ Select ]
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?
Van brings $40 to a baseball game to spend on sodas and pizza. The following diagram shows his budget constraint: SUCES OF PIZZA 20 18 16 14 12 4 2 0 4 6 U BC 10 SODAS According to the diagram, sodas cost 5 12 14 16 18 20 each, and puzza costs $ BC ? per slice. Adjust the diagram to show how Van's budget constraint would change if he had brought more money to the ballpark (Assume the prices of sodas
10. Deriving demand from an indifference map Valerie lives in San Francisco and enjoys drinking lattes and eating scones. The price of a latte is held constant at $4 throughout this problem. On the following diagram, the purple curves (I and I2) represent two of Valerie's indifference curves. The lines BL₁ and BL2 show two budget lines. Points X and Y show Valerie's consumer equilibriums subject to these budget lines. QUANTITY OF LATTES 20 18 16 14 12 10 8 6 2 0 ہے + 0 2 + 4 BL 6 8 10 12 QUANTITY OF SCONES 14 BL₁ BL₂ BL 16 18 20 Given the previous graph and knowing the price of a latte is $4, Valerie's budget is Using the budget amount you previously computed, complete the following table by finding the price of a scone when BL₁ represents Valerie's budget line and when BL represents her budget line. Then indicate the quantity of scones consumed in each of those scenarios. Price When Valerie's budget line is... (Dollars per scone) Consumption (Scones) Given the price-quantity…