Draw Shahab’s budget constraint if he has income/ budget of Rs. 1000 which he can spend on buying Pizzas and Pepsi cans ( Price of a Pizza is Rs.100 and price of a can of Pepsi is Rs.20)

Q: Mrs. Rochester earns $4500 a week and spends her entire income on computers and pastries, since…

A: a )  Mrs. Rochester insist that for every computers she buys, she must also buys a pastry's. This…

Q: Dmitri is in a band and likes to advertise upcoming shows using flyers he posts around the city.…

A: Budget constraint: - it is a graphical representation of different bundles of goods that a consumer…

Q: he insists on consuming exactly one sweet tea for every two burgers that he eats. Then, using an…

A: An indifference bend tells a blend of two products that offer equivalent fulfillment and utility to…

Q: Suppose Tom has $60 in income and only buys cheese and tuna. Walmart charges $2 for a can of tuna…

A: # Tom's budget:  -  $60 in income  -  $2 for a can of tuna and $4 for a block of cheese # Initially…

Q: Celine won the prize at the end-of-year party and she had to choose between a $100 Amazon gift card…

A: The budget line is a graphical representation of all possible combinations of the two commodities…

Q: State the reason that why indifference curves never intersect each other. Furthermore, why higher…

A: An indifference curve shows the various combinations of two goods that give the consumer equal…

Q: 8. Normal and inferior goods Larry likes going to the ballpark to watch baseball, and he also is…

A: Answer:1. The correct answers are:  His income increased while the prices of baseball and symphony…

Q: et line. Now suppose price of canned tuna decreases to $6. Draw the new budget line. Draw two…

A: The utility is maximized where the slope of indifference curve is equal to the slope of budget line.…

Q: Coconuts (number per week) 50 40 30 12 10 10 20 30 40 50 Crabs (number per week) 20

A: Here, the given graph shows two indifference curves and it is also given that Time can only consume…

Q: Kevin likes going to the ballpark to watch baseball, and he also is fond of going to the theater to…

A: Budget constraint is the equation that shows how the income of the consumer puts a constraint on the…

Q: Y) för 1 пее (g0 a. Write out Jim's utility function. b. Jim's budget constraint is 100 = 4x + 9y.…

A: (A) U = min(2X, Y) If Y is 2, X should be 1,thus U remains constant and U is utility.

Q: The diagram below shows one of Popeye's indifference curves (relating bottles of pure olive oil to…

A: Utility is the satisfaction derived from the consumption of goods.  Marginal utility is the utility…

Q: You are graphing Mickey's indifference curve over steak and chicken. He likes both of them and his…

A: All commodity bundles with the same utility level are shown by the utility function. A graphical…

Q: Arthur spends his income on bread and chocolate. Chocolate is a good from which Arthur gets a…

A: Indifference curve: Indifference curve shows different combinations of 2 goods such that consumer’s…

Q: Shen likes going to the ballpark to watch baseball, and he also is fond of going to the theater to…

A: Budget constraint depicts the combination of two goods that can be afforded by a consumer, given the…

Q: Present a budget line and a budget set for the consumer of two good X and Y, where the consumer has…

A: Utility function and budget constraint: The utility function refers to all those commodity bundles…

Q: Let Pp denote the price of pizza, and let Ph denote price of hamburgers.  In addition, let MUp…

A: An indifference curve shows a combination of two goods in various quantities that provides equal…

Q: Your classmate tells you that he is indifferent between three soft drinks and two hamburgers or two…

A: Indifference curve An indifference curve refers to a graphical representation of two combination of…

Q: Norman and Gina consume food and clothing. In particular, Norman currently consumes 4 units of food…

A: An indifference curve is a graphical representation used to show different combinations of two goods…

Q: For Daniel, Pepsi and pizza are complementary products. He consumes a Pepsi with two slices of…

A: Complementary goods are products that increase in price when the demand for relative merchandise…

Q: Suppose that the average consumer has $300, is only choosing between buying shoes (currently $60)…

A: Here we have to find out the combination that gives the highest utility consistent with the…

Q: Jean-Pierre has preferences represented by the utility function U( x, y) = min{ 2 x + y, x + 6 y}.…

A: Utility is the satisfying power of a good. Consumers always choose to maximize their utility when…

Q: Ursula views one cup of frozen yogurt to be a perfect substitute for three pieces of chocolate chip…

A: An indifference curve shows various combinations of two goods that give the consumer equal utility…

Q: Paul derives utility from cups of coffee (C) and donuts, which he eats a dozen at a time (D). His…

A: The above question is based on consumer preference. Here Paul consumes coffee and donuts and his…

Q: Using the figure and prompt below, what is Owen's optimal consumption bundle? Figure: Consumer…

A: The budget line, also known as the budget constraint, represents all the combinations of two…

Q: Suppose that Martha’s income is $40,000 per year. She can spend it on health care visits, which cost…

A: Utility maximization problem: With the given prices and the income, a consumer chooses his…

Q: Which of the following would have an indifference curve drawn as a right angle? plastic containers…

A: Indifference curve is a graph which shows various combinations of two goods that give same level of…

Q: Consider the bundle 2 pizza and 8 coke. Label this point. What can you say about the slope of the…

A: Indiffernce curve graphical representation of the combination of two goods that the consumer is…

Q: Michael and Kelly consume food and clothing. In particular, Michael currently consumes 19 units of…

A: Indifference curves are heuristic instruments that are utilized in modern microeconomics to…

Q: 8. Normal and inferior goods Antonio likes going to the ballpark to watch baseball, and he also is…

A:

Q: Tom is willing to forego two gallons of milk in order to try his first container of rice pudding.…

A: As, Tom has consumed 0 rice pudding containers until now, therefore, he will be willing to give up 2…

Q: Draw YOUR indifference curve for the consumption of two goods (you pick the goods – be creative!)…

A: A consumer is a rational person who wants to gain the maximum satisfaction level from paying the…

Q: Xia's utility function is U = TC, where T is baskets of tomatoes and C is bags of carrots. One of…

A: Indifference curve: Indifference curve shows different combinations of 2 goods such that consumer’s…

Q: Michael and Kelly consume food and clothing. In particular, Michael currently consumes 23 units of…

A: Indifference curves are heuristic instruments that are utilized in modern microeconomics to…

Q: Rick consumes 2 goods, Chicken McNuggets (M) with Szechuan sauce (S). His utility function is U(M,…

A: In microeconomics, the function of U {"utility"} is described as a crucial term or concept in which…

Q: Belinda loves chocolate and always thinks that more is better than less. Belinda thinks that a few…

A: An indifference curve is a graphical representation used to depict the different combinations of two…

Q: Amy enjoys eating muffins and scones. The following graph displays one of Amy's indifference curves,…

A: The MRS is the amount of a product that a consumer is willing to sacrifice in order to get 1 unit…

Q: A consumer has a budget set aside for entertainment during the year, and they spend the budget on…

A: An indifference curve shows various possible combinations of two commodities that gives an equal…

Revealed Preferences and Budget Constraint Analysis

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