Draw and label the following budget curves on a clearly labeled graph. A consumer uses their full income to purchase goods x and y. 1. The income is 24 and the initial price of x is 2 and the price of y is 3. 2. The same as 1 but the income has risen to 36. 3. The same as 1 but the price of y is 6. 4. Apply both of the changes from 2 and 3. Income rise to 36 and the price of y rises to 6.

Q: Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y…

A: The utility maximizing level is given as MUx/Px= MUy/Py Good X   Good Y   Quantity MUx/Px…

Q: Suppose a consumer had an income of $100 and spends $50 on potatoes. Suppose now that his income…

A: Given information: Initial income: $100 Final income: $150 Initial spending (demand) on potatoes:…

Q: Total utility rise from 10 to 18 and the total quantity rise from 1 to 2  Calculate the marginal…

A: # the term marginal utility simply measures the change in utility taking place when the consumption…

Q: Question 4 A consumer has income of $15,000. Pillows costs $35 per pillow, and soda costs $70 per…

A: Income = $15,000 Price of Mask = $35 Price of sanitizer = $70

Q: Problem: Cans of dog food (cans per week) 20 16 4 0 4 8 12 16 20 24 Cans of cat food (cans per week)…

A: The budget line showcases the different combinations of goods that an individual can purchase for a…

Q: Give an example of inferior good and an example of normal good that you have encountered and how has…

A: Normal goods and inferior goods are characterized based on how a good's demand responds to a change…

Q: 05- Income and Substitution Effects Question 7

A: Option e is correct.Explanation:Giffen goods are rare types of goods whose demand rises with the…

Q: Which of the following shift the market demand curve for a specific good? The number of consumers.…

A: Market Demand: As In a market there are many buyers. Hence for a given market price, they have their…

Q: Good X IC₂ IC₁ Good Y

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

Q: 37) The above figure shows Bobby's indifference map for soda and juice. B₁ indicates his original…

A: Indifference Curve represents how a combination of two goods in various quantities that provides…

Q: True or False?

A: The first statement is False. A decrease in income does not pivot the budget line around the bundle…

Q: 27. When Sam has an income of $1,000, he consumes 30 units of good A and 50 units of good B. After…

A: Goods are items which satisfy human wants and in turn provide utility.For instance,to a consumer who…

Q: When Marietta chooses to only purchase a combination of goods that lie within her budget line, she:…

A: In consumer theory, the combination of goods and services that a consumer can acquire for his or her…

Q: Good X A B IC2 Good Y | The rotation of the budget line from red to blue depicts an increase in…

A:

Q: Part 4 5 6 needed David’s utility function for good X and Y is given by U (x, y) = x2 y3 . Where Px,…

A: The graphical representation of the utility function is known as the indifference curve.  The…

Q: Suppose Alex has income of $100 per month. He only consumes pizza and cell phone minutes. Illustrate…

A: Budget constraint: Budget constraint is a utility concept that is used in maximizing the utility…

Q: What is “Compensating Variation”? What is “Consumer’s Surplus”? What is “Equivalent Variation”? What…

A: Utility:The utility is the power or ability of the goods and services that satisfy the consumers…

Q: Mr. Max is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is…

A: Mr max purchasing 4 unit of good A and 6 unit of good B Price of A and B is $2

Q: Multiple Cholce prices of Cand D cannot be determined. price of C Is $5 and the price of D is $10…

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

Q: Good Y 40 30 O L L1 L2 8* e₁ ./1 12 60 Good X I The arrow on the graph above shows the budget line…

A: Substitution effect is the change in the consumption bundle due to change in price of good holding…

Q: uppose that Ahmed's income OR 2800, and he has to purchase two goods X and Y. The price of good X…

A: Income of Ahmed =OR 2800 Price of good X (Px) =OR 20 Price of good Y (Py) =OR 40

Q: Price for good A is $6 and good b is $8.  Budget is $36.            Good A…

A: Quantity Total Utility marginal utility  $MU Quantity Total Utility marginal utility  $MU 1 18 18…

Q: rite the budget equation of the consumer and draw the line of this equation. ii. Using the budget…

A: Budget line represents different combinations of two goods that can be purchased with given level of…

Q: ive an example of inferior good and an example of normal good that you have encountered and how has…

A: Inferior goods are those goods of which the demand for products decreases and income level…

Q: A is Giffen good, and B is a inferior good. (a) When the consumer has more income, she must consume…

A: Giffen goods are considered as the rare form of inferior goods that have no real substitute in the…

Q: Questions 5 (Demand). The following graph displays Adam's consumption point at a certain level of…

A: The consumers are the entities who tend to consume the goods, services, and other products produced…

Q: A consumer who has spent all of her income on clothes and food and finds that her marginal-utility…

A: Answer: A purchasing more clothes and less food