In 2001, the typical consumer in Volcania spent $3577 on all goods and services. They spent $1967.35 on food. What percent of their budget did they spend on food?

Q: Vhen consumers have a budget, their utility is maximized by buying a combination of goods such hat…

A: A rational consumer seeks to maximize the utility received in spending his or her income in such a…

Q: In a recent speech, the governor of your state announced: “One of the biggest causes of juvenile…

A: A price ceiling is the price set by the government which is the maximum that should be charged from…

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: Does the income level of a person change their view of substitute goods?

A: Two goods are substitutes of each other if both can be used in place of another. Similar and…

Q: Aria consumes only two goods, food and clothing. The marginal utility of the last dollar she spends…

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

Q: what is a scenario in which the consumer faces a shortage of a good due to high demand. Explain how…

A: The objective of the question is to understand a scenario where a consumer faces a shortage of a…

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: If a consumer is consuming a combination of goods and services on his budget line, has the consumer…

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

Q: Complementary goods are goods that are closely related. Choose the example below that best describes…

A: The objective of the question is to identify the best example of complementary goods among the given…

Q: Explain how economic forces such as employment, income, prices, interest rates, and consumer…

A: Demand for a commodity id desire backed by ability to buy and willingness to pay by an individual,…

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: A consumer sets themselves a weekly budget of $15 for vegetables. They only eat carrots and peas.…

A: A budget line shows various combinations of two goods a consumer can purchase by spending all income…

Q: You are considering subscribing to Hulu. You are willing to pay up to $12 per year for a…

A: The excess of a product's social value above its real price is known as the "consumers' surplus,"…

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

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Q: GrubHub, a food delivery service, has recently expanded to your area. The accompanying table…

A: Demand is a consumer's desire and ability to purchase goods and services that they are willing to…

Q: The monthly quantity demanded for cars is shown in the table below. Demand for Cars Price (dollars)…

A: Demand refers to the quantity of a good or service that a consumer is willing and able to buy at a…

Q: a. What was Wendy's drinks (sugary drinks and smoothies) budget last week and what is it this week.…

A: A budget line shows various combinations of two goods a consumer can purchase by spending all income…

Q: You purchased five video games at $20.00 each and eight apps from iTunes for $2.99 each. The fifth…

A: The utility function refers to all those commodity bundles that derive the same amount of utility…

Q: The monthly quantity demanded for cars is shown in the table below. Demand for Cars Price (dollars)…

A: A tabular representation of the relationship between the price (P) of a product or service and the…

Q: If a consumer's income decreases, what will happen to the budget line? It will shift outward. It…

A: A budget line, also known as a budget constraint or consumption possibility frontier, is a graphical…

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: 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: Provide two reasons why were consumer good shortages in planned economies (such as the Soviet Union)…

A: Shortage is defined as having less supply of goods even when there is demand for it. Consumer goods…

Q: Which of the following goods would most probably be a normal good? Multiple Choice used furniture…

A: Demand for those goods increases with increase in income refers to normal goods.Which means that…

Q: Use the information above sketch a model of how the market for pomegranates in Country A and in…

A: Here, the market conditions for pomegranates in countries A&B have been considered. In Country…

Q: Kimiko is planning a party to celebrate her birthday. She has decided to serve sushi and yakitori…

A: Introduction The budget line (BL) or budget constraint (BC) displays all the combinations of the two…

Q: When a consumer is below the budget line, what does it mean?

A: According to the given question A budget line is gradually a line which have other name that is the…

Q: Becky only eats out at Macaroni Grill and eats out three times per month. She receives a raise from…

A: The measure that depicts the change in quantity being demanded for a service or good with respect to…

Q: would you rather maximize your total utility or your marginal utility?

A: Total Utility is the total satisfaction that a consumer receives when he consumes different units of…

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

A: In economics, utility refers to the overall satisfaction derived from the consumption of a good or…

Q: Suppose you have a budget of 30 to spend on two goods: pizzas and burgers. Each pizza is $5 while…

A: Budget constraint shows the relationship between the two goods, their prices and the income of the…

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.