A sakai.plu.eduNetflixYouTubeDashboardQuick LinksIn the diagram, Tanisha originally selects her consumption bundle at point A with3 pounds of olives and 4 pounds of pickles a year. Then the price of pickles risesand the price of olives falls so that her budget line rotates but it still goes through230omi...26027028031032033Cpoint a. Tanisha's consumption of pickles36C37038Dem...zet S...old ..2246.8.1012Olives (pounds per year)OA. definitely will rise.OB. definitely will fall.OC. definitely will stay the same.OD. could rise, fall, or stay the same.F2F3000 F4F5F7F8F94)F10FII@#3244%&*235679.WEYPickles (pounds per year)

The theory of demand says that with an increase in price the demand for the commodity falls. Thus,…

In the diagram, Tanisha originally selects her consumption bundle at point A with 3 pounds of olives and 4 pounds of pickles a year. Then the price of pickles rises and the price of olives falls so that her budget line rotates but it still goes through point a. Tanisha's consumption of pickles

In the diagram, Tanisha originally selects her consumption bundle at point A with 3 pounds of olives and 4 pounds of pickles a year. Then the price of pickles rises and the price of olives falls so that her budget line rotates but it still goes through point a. Tanisha's consumption of pickles

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The budget set, or budget constraint, in the graph shows the possible combinations of brownies and ice cream cones that can be purchased. Assume that this person has a total of $18 to spend on brownies and ice cream cones. How much does a brownie cost? $ Assume that at point A, the marginal utility from a brownie is 10 and the marginal utility for an ice cream cone is 18. This person is utility maximizing. should consume more brownies and fewer ice cream cones. should consume more ice cream cones and fewer brownies. Brownies 18- 16- 14- 12- 10- 8- 6- 4 2. 0 1 2 3 1 A 1 + 4 5 Budget constraint 6 7 8 9 10 11 12 13 14 Ice cream cones
Bruno can spend his income on two different goods: smoothies and energy bars. For each of the following three situations, decide if the given consumption bundle is within Bruno’s consumption possibilities. Then decide if it lies on the budget line or not. Smoothies cost $2 each, and energy bars cost $3 each. Bruno has income of $60. He is considering a consumption bundle containing 15 smoothies and 10 energy bars. Smoothies cost $2 each, and energy bars cost $5 each. Bruno has income of $110. He is considering a consumption bundle containing 20 smoothies and 10 energy bars. Smoothies cost $3 each, and energy bars cost $10 each. Bruno has income of $50. He is considering a consumption bundle containing 10 smoothies and 3 energy bars.
Henry has $450 to spend on movies and concerts. Suppose the price of a movie ticket is $15 and the price of a concert ticket is $90. Draw Henry's budget line. Your graph should include labels for your axes, and you should note the quantities at which the budget line meets each axis. Label Henry's budget line "BL" Next, suppose that the price of concert tickets drops to $75. Draw Henry's new budget line, and label it 'BL2'.
Alex distributes his monthly income of $600 between two goods, movies and food. By spending his entire income on movies, he can enjoy a maximum of 20 movies. On the other hand, by spending his entire income on food he can consume a total of 60 units of food. Assume that food consumption is measured along the horizontal axis and the consumption of movies is measured on the vertical axis. Calculate the slope of Alex's budget line when the price of food increases to $20 while the price of movie remains unchanged. -2/3 - 1.5 -2 -3/4
Suppose that Jon is purchasing the optimal amounts of apples and oranges. The marginal utility of the last apple is 8 and of the last orange is 6. If the price of an apple is $1, what must be the price of an orange?:" 50 cents. $1.40. 75 cents. $1.33.
Suppose Gregg consumes chocolate candy bars and oranges. He is given four candy bars and three oranges. He can buy or sell a candy bar for $2 each. Similarly, he can buy or sell an orange for $1. If he has no other source of income, draw his budget constraint and write the equation. What is the most he can spend, Y, on these goods?
Sonia likes cupcakes and tea. She has Rs.100 to spend on cupcakes and tea; cupcakes cost Rs.20 each, and cups of tea cost Rs.10 each. Sketch her budget constraint on a graph with cupcakes on the horizontal axis and cups of tea on the vertical axis. Sonia also has a calorie constraint: she can only consume 800 calories, and each cupcake has 200 calories, while tea has no calories. On your graph, sketch in Sonias calorie constraint and indicate her budget set - the set of feasible combinations of cupcakes and tea given her two constraints. Label all the kinks of Sonias budget set with their coordinates.
Suppose Sam has a weekly budget of $48 to spend on juice and yogurt. Juice is priced at $4 per gallon, and yogurt is priced at $2 per container. gallons of juice. If he spends his entire $48 on yogurt, he can buy containers of If Sam spends his entire $48 on juice, he can buy yogurt. Use the blue line (circle symbol) to plot Sam's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of juice and yogurt that are affordable for Sam. Finally, place the black point (plus symbol) on the point on Sam's budget constraint that corresponds to a scenario in which Sam spends $24 on each good. Note: Dashed drop lines will automatically extend to both axes. ? 36 33 30 27 24 21 18 12 9 6 3 YOGURT (Containers) 0 0 + 3 6 9 12 15 18 21 JUICE (Gallons) 24 27 30 33 36 BC, ($48) 0 Affordable Region $24 on Each BC₂ ($60)