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- Paul has $22.25 of income to spend on two goods, Twinkies (q, ) and Pepsi (a2). Paul cannnot afford a bundle (91 , 92) = (5 , 10) by spending his entire income. If the price of Twinkies is $2.85, then the price of Pepsi is O A. at least O B. at most OC. D. equal to (round your answer to two decimal place), and the slope of Paul's budget line (with q1 on horizontal axis) is A. less than O B. equal to OC. O D. greater than (round your answer to two decimal place).Give me correct answer with calculation and full explanation otherwise i give down vote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.Teresa spends her entire scholarship of PLN 600 for the purchase of drinks and food. 1. Draw Teresa's budget restraint line knowing that her favorite drink costs 5 zlotys per bottle and the dinner price is 20 zlotys. 2. How will Teresa's situation be affected by the increase in dinner price to PLN 25? 3. What will happen if the price of the drink is reduced to PLN 2.5? 4. Assess following quantitative combinations: •125 drinks i 20 dinners •80 drinks i 20 dinners •40 drinks i 20 dinnes
- 2. David gets $3 per week as an allowance to spend any way he pleases. Since he likes only peanut butter and jelly sandwiches, he spends the entire amount on peanut butter (at $0.05 per ounce) and jelly (at $0.1 per ounce). Bread is provided free of charge by a concerned neighbor. David 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. a) How much peanut and jelly will David buy with his $3 allowance per week? b) Suppose the price of jelly increases to $0.15 per ounce. How much of each commodity would be bought? c) By how much should David's allowance be increased to compensate for the rise in the price of jelly in part b? d) Graph your results of part a through part c.Using money creation to pay for government spendingNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- /pls help understand how to draw graphs1. Gorgeousleny with an income of P150 would like to buy two goods. Let us say juice and bread. Price of juice is P12 and price of bread is P6. If gorgeousleny will buy the ist 5 juices she is entitled to a 50% off. Draw the graph. After a week gorgeousleny went back to the store and will still buy her two favorite goods with the same income of P150 and price of bread and juice is constant. but this time the promo of 50% off is applied after the ist 5 juices. Draw the graph. . a. ) Measure the qty. of bread on the vertical axis and the qty. of juice on the horizontal axis. Label both graph with its corresponding points, pt. A for bread and point B for juice. the combination of bread and juice label it as point C. b.) For both graph, What is the slope from point C to point B?; What is the slope from from point A to point C?
- 1. Rosie has just written a book. Assume that her preferences are consistent with expected utility theory. There is 30% chance that her book will be a best-seller and make $500,000 in profit (after the costs of production) and a 70% chance it will just break even (i.e. no profit after the costs of production). Her current income is $150,000 (which she will receive regardless of what happens with her book) and her utility function is u (I) = ln (I) (a) Is Rosie risk-averse, risk-neutral, or risk-loving? How do you know? (b) Assume that Rosie will receive all of the profits (if any) from her book. Draw a diagram illustrating (i) Rosie's total income if her book just breaks even, (ii) her total income if her book is a best-seller, (iii) her expected income, (iv) her expected utility, (v) her certainty equivalent, and (vi) her risk premium. (c) Compute the numerical values associated with each of the six amounts you found in (b). (d) Acme Publishing Company has offered Rosie $100,000 for…Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Q 2