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Give two examples of intermediate goods
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- If a change in variable X causes a change in variable Y, variable Xis called the Select one: a. independent variable b. dependent variable c. explanatory variable d. B and CSuppose a consumer has a monthly income of m = 100 which she spendson two commodities: french fries (x1) and beef jerky (x2). The price offrench fries is p1 = 2 and the price of beef jerky is p2 = 5. (e) What is the slope of the budget line? Provide an economicinterpretation of this number.(f) Because of Mad Cow Disease, the price of beef jerky increasesto $10 (lower supply of beef). On a new graph, plot the originaland new budget constraint clearly identifying how the budgetconstraint has changed. What is the new relative price of beefjerky in terms of french fries?(g) Because of severe shortages, Congress passes the Jerky ReliefAct which limits each consumer to purchase at most 5 packs ofjerky. Show on a graph how this affects the consumer’s budgetset. Answer all three.HDI vs GNI formula to create scatterplot
- Charlie eats only pizzas and fruit salads which are discrete goods. Each pizza has 1000kcal, and each fruit salads has 250kcal. The price of one fruit salad is £3, and the price of a pizza is £8. Charlie spends his entire budget on consumption and eats everything that he buys. He consumes no less than 1600 kcal per week and no more than 2500 kcal per week. Which of the following is true? a. His income must be between £16 and £30. b. He always spends at least half of his income on pizzas. c. He eats at least one pizza per week. d. He eats at least 2 fruit salads per week.John is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns a typical student income from the parents, GHS 400 a month. She can either spend it all on Yoghurts and get 50, or she can spend it all on Bread and get 200 loaves. a. Given this information, construct the equation for John’s Budget Line. b. John gets a research grant and her income increases to GHS 800 per month. What is the new equation of her budget line? What if income stays constant at GHS 400 and the price of Yoghurts increase to GHS10? c. Assume that prices are the same as used in part a. If the marginal utility of a Yoghurt is 20, what is the marginal utility of Bread if she is maximizing her utility?A consumer has an original income M to spend on goods X and Y. The market price of these two goods are Px=$10 and Py=$25. Based on the information given in the graph above: 1. Determine the consumer income M. 2. Determine the market rate of substitution between goods x and y? give an interpretation of your answer. Now assumer that the consumer income increases to a new level M' but the prices stay the same. Based on the information given in the graph above: 3. Determine the increased income M'. 4. Does the increase in the consumer income increase the market rate of substitution? Explain your answer.
- NOTE: THIS IS FOR A NON-GRADED QUIZ. Louis has stable preferences and consumes two goods, wine and cheese. In 1994, the price of wine was $4/glass and the price of cheese was $2/ounce. Louis's income was $60 and he bought 12 glasses of wine and 6 ounces of cheese. In 1995, wine costs $2/glass and cheese costs $4/ounce. Louis's income is still $60. a. Draw both years' budget lines. Where do they cross? b. What is Louis's marginal rate of substitution of wine for cheese in 1994? [hint: you can't use calculus]According to Exhibit A-5, what is the relationshipbetween the price per pizza and the quantityof pizzas purchased?a. Directb. Inversec. Complexd. IndependentExplain the income effect with the diagram
- The mathematical slope of the steeper line is _____ the slope of the less-steep line.You drink only Coffee or Orange juice: a) Calculate the MU per dollar for Coffee b) Calculate the MU per dollar for Orange Juiceexplain the relationship between substitute goods and original goods whether its a positive or negative relationship, do the same with complementary goods as well.