Ebrima gets $3 per month as an allowance to spend any way he pleases. Because he likes only peanut butter and jelly sandwiches, he spends the entire amount on peanut butter (at $.05 per ounce) and jelly (at $.10 per ounce). Bread is provided free of charge by a concerned neighbor. Ebrima is a picky eater and makes his sandwiches with exactly 1 ounce of jelly and 2 ounces of peanut butter. He is set in his ways and will never change these proportions.  How much peanut butter and jelly will Ebrima buy with his $3 allowance in a week?  Suppose the price of jelly were to rise to $.15 per ounce. How much of each commodity would be bought?  By how much should Ebrima’s allowance be increased to compensate for the rise in the price of jelly in part b?

Q: Basil is a broke college student who consumes only coffee and pizza. No one is really sure how he…

A: Budget constraint is the aggregate amount of items someone can afford within a current budget.…

Q: David spends his budget on chocolate and chip. His utility function is given by U(q₁, 92) = 29192,…

A: Given  David utility function: U(q1, q2)=2q1q2         ..... (1) Where q1 denotes the number of…

Q: Use the graph below to answer the following question: OC OD OB Tacos Which point would give this…

A: A budget line shows the different combinations of two goods that a consumer can buy, based on their…

Q: How would universal basic income affect consumer optimum?

A: Universal basic income is a scheme to provide a specific sum of money to all the citizens of a…

Q: Calculate for the equivalent variation (EV) for the price change.

A:

Q: Joyce consumes x1 and x2 together in fixed proportions. She always consumes 1 unit of x2 for 2 units…

A: The utility function is the mathematical relationship between the utility and the amounts of various…

Q: Melanie inherited $25,000, and she needs to decide how much to spend now and how much to save for…

A: Answer: Correct option: $15,000 Explanation: Melanie income in period 1 = $25,000 Now suppose that…

Q: Greg has the following utility function: u = x1^0.361x 2^0.642. He has an income of $74.00, and he…

A: Utility function is the function that shows or represents the level of satisfaction or degree of…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Indifference curve shows the combination of two goods which give a consumer same level of…

Q: Price of Can of Beer = $0.50 Total Utility Price of Slice of Pizza = $1.00 Slices per Week Total…

A: According to the question, the price of beer is $0.5 and pizza is $1.

Q: Megan likes to eat toast with hazelnut spread and drink wine. She enjoys these items in very…

A: Referenceshttps://www.investopedia.com/terms/i/indifferencecurve.asp

Q: Jessica has an income of $216 and she is buying apple cider and books. Apple cider is $8 per unit…

A: Bundle Q(A) MU/$(A) Q(B) MU/$(B) A 0   9   B 3 6.13 8 5.13 C 6 5.38 7 5.21 D 9 4.63 6 5.29…

Q: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: Consumer spends $450 per week on two goods, X and Y. PX= $5 and PY=$3. His utility function is U=…

A: Consumers behavior is inclined towards utility maximization, whereas producers behavior is inclined…

Q: A consumer derives all of his utility from a single good; he devotes his entire income $10 to…

A: The concept of Equivalent Variation (EV) measures the change in income required to maintain a…

Q: Suppose that you are given $60,000 to split between two people, Jane and Fred. The income and…

A: Utility means satisfaction. The marginal utility is the utility derived from the consumption of last…

Q: Michelle purchase to maximize her utility. Show all working  Makeup= $1 Clothes = $0.50

A: Total utility is the total satisfaction that the consumer derives from consumption of goods.Marginal…

Q: 1. Every week I spend a total of £400 buying two goods, luxuries (L) and necessities (N). I obtain…

A: The literal meaning of utility is satisfaction. Utility means the satisfaction derived from…

Q: Suppose Mia's utility function on lemon soda (X) and chips (Y) is given by U(X,Y) = X0.5Y0.5 She…

A: Any individual preferences are represented by a utility function and any utility function is unique…

Q: Price of Can of Beer = $0.50 Cans per Week Price of Slice of Pizza = $1.00 Slices per Week %3D Total…

A: Budget Line 10.5 = 0.5B + P21 = B + 2P (By duviding 0.5) MU = Change in TU/Change in Q

Q: Xavier has preferences between food eaten today and food eaten tomorrow of the form. U(today,…

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

Q: Eren’s two main hobbies are taking vacations overseas (V) and eating expensive meals (M). His…

A: Equivalent Variation: When the price of a good changes and hence the consumption bundle, that new…

Q: erry spends $ 10 a month on pet dispensers and uperman action figures. His marginal-…

A: Marginal Utility alludes to extra utility by virtue of the utilization of an extra unit of a…

Q: A consumer has a budget to spend on Shoes and Socks. At their current levels of consumption, they…

A: Marginal utility per dollar is the amount of utility obtained by the consumer from spending one more…

Q: Shiela bought a new phone and paid $10,000. This means that her marginal utility from this new phone…

A: Here, it is given that Shiela bought a phone and she paid $10,000 for the phone.

Q: Edmund loves lollipops and hates oatmeal. To induce him to eat enough oatmeal and to restrain him…

A: This can be defined as a concept that shows from the available fixed resources to the consumer how…

Q: In 2001, the typical consumer in Volcania spent $3577 on all goods and services. They spent $1967.35…

A: Total expenditure done by consumer = $3,577 Expenditure on food = $1,967.35 Percentage of budget…

Q: If Ginna spends her entire budget, she could buy a chosen set of groceries and also buy 10…

A: Given,  Ginna's budget is £150Her preferences are either groceries (G) or notebooks (N)Utility…

Q: The Busto family is allocating its monthly household expenditure between only two goods, food and…

A: Given information: Price of food: $5 per unit Price of clothing: $10 per unit Marginal utility from…

Q: Alex, who was convinced that "Football is coming home", was very excited for the World Cup last…

A: INTRODUCTIONIn the midst of World Cup excitement, Alex, a passionate football enthusiast, eagerly…

Q: 1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The price of this…

A: Income available to spend on product A is $780 Price of product A is $26 => Units purchased with…

Q: Fill out the table below to give an example of each type of utility based on the scenario.…

A: Utility is a behavioral economic concept that reflects the worth of a good or service in terms of…

Q: Graph your results of part a through part c.  In what sense does this problem involve only a single…

A: 4)

Q: Edmund loves lollipops and hates oatmeal. To induce him to eat enough oatmeal and to restrain him…

A: To purchase every quart of oatmeal by the consumer, 10 pence is paid. The sweetshop is selling the…

Q: spends all of her income on two goods, coffee and doughnuts. She buys coffee at 25 cents per unit…

A: Total utility is the sum of all the utilities derived from the consumption of a good. Whereas, the…

Q: A consumer has Cobb-Douglas preferences for beer and pizza. She spends 50% of her budget on New…

A:

Q: Use the table below to answer the following questions. Windsurfing equipment rents for $10 per hour…

A: There is a person; Devon. We have given Devon's total utility from snorkeling and windsurfing.…

Q: The marginal utility of the 8th can of beer is

A: In economics, marginal utility refers to the additional satisfaction or benefit (utility) a buyer…

Q: According to this graph of your utility function would you be considered risk-averse or a…

A: Risk averse consumer or investor does not go for the high risk and such consumer prefers low risk.…

Q: If the price of food is $20, the price of clothing is $80, and annual income is $60,000, determine…

A: To determine the optimal combination of food and clothing the consumer will purchase, we need to set…

Q: When she is maximizing her utility, she will purchase kg of oranges and tuna sandwiches. Your…

A: Suppose the consumer is consuming two goods: X and Y.The consumer will maximize utility at the…

Q: Eren’s two main hobbies are taking vacations overseas (V) and eating expensive meals (M). His…

A: Compensating variation: When the price of a good changes and hence the consumption bundle, that new…

Q: 4. Liam initially has a weekly allowance of €24 to spend on eggs (at €0.40 per egg) and beans (at…

A: Liam will only consume 4 eggs with each tin of beans. This denotes that Liam considers eggs and tin…

Q: Donuts are a big thing in Portland, OR. You go into one of the many donut establishments to purchase…

A: Given,   Willingness to pay for 1st donuts = $2  Willingness to pay for 2nd donuts = $1.50…