Income S60 - 60 Peola 51 Pizza Income $60 Ppizza $10 5. Refer to Scenario#1. If the price of cola doubles to $3 while thec income and the price of pizza are constant, then the a. budget constraint intersects the vertical axis at 20 colas C. slope of the budget constraint rises to -2 b. budget constraint intersects the vertical axis at 30 colas d. budget constraint shifts inward in a parallel fashion

Income S60 - 60 Peola 51 Pizza Income $60 Ppizza $10 5. Refer to Scenario#1. If the price of cola doubles to $3 while thec income and the price of pizza are constant, then the a. budget constraint intersects the vertical axis at 20 colas C. slope of the budget constraint rises to -2 b. budget constraint intersects the vertical axis at 30 colas d. budget constraint shifts inward in a parallel fashion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Exhibit 5-2 Michael's Utility Schedule Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. Units of TU of MU of Units of cola TU of cola MU of cola 40 pretzels 30 20 16 40 pretzels pretzels 30 2 3 32 2 3 96 112 124 24 66 78 84 4 4 In Exhibit 5-2, if Michael has $40 to spend on cola and pretzels, what is his maximum utility possible? 40. 174. O 190. O 208.
8.Refer to Figure 3. Assume Tom is on budget constraint AC. If the price of a hot dog is $2.50, Tom's monthly income is Select one:a. $40b. $60c. $80d. $100
2. Draw a budget constraint, indifference curves, and the consumer's optimal point for pizza and Pepsi. Show what happens to the budget constraint and the consumer's optimum when the price of pizza increases.
Q8. Jacob's favorite activities are going to baseball games and going to the theater. Jacob's budget for these activities is $600. A ticket to a baseball game costs $15 and a ticket to the theater costs $60. a. Graph Jacob's budget constraint. b. Calculate the slope of Jacob's budget constraint c. How many t total baseball games can Jacob attend if he visits the theater six times? d. Suppose Jacob receives $300 in cash for his birthday and he decides to put all of this money toward his entertainment budget. Draw Jacob's new budget constraint. e. If Jacob now decides to visit the theater ten times, how many baseball games can he attend?
How does the law of diminishing marginal utility relate to changing income? Select one: a. The marginal benefit of an extra dollar of income rises as income rises. b. The marginal benefit of an extra dollar of income falls as income rises. c. The total utility gained from a small income is higher than the total utility gained from a high income. d. The total utility gained from a high income is higher than the total utility gained from a low income.
Worksheets 6. Dan spends his money on baseball games and concert tickets. Baseball tickets cost 915 , and Concent tickets cost$25. His entertainment budget is$150. a. Draw Dan's budget constraint, putting basebali tickets on the x-axis. b. Dan decides to attend three concerts and five baseball games. Plot this point on the budget constraint. C. Dan's best friend Jay tells Dan that his favorite thing to do is go to concerts. In fact, going to concerts is popular with a lot of Dan's friends. Will Dan's budget constraint increase. decrease, or stay the same? Will the quantity of concerts he attends increase, decrease, or, stay the same?
Refer to the information provided in Figure below to answer the question that follow. Lingle's monthly budget constraint 40 A OD B E 40 Number of gardenburgers per month Refer to Figure The slope of budget constraint AC is Select one: a. indeterminate from this information because prices are not given. b. -1/2 C.-2 d. -1 Number of beers per month
Refer to the information provided in Figure 6.4 below to answer the question(s) that follow. Number of bell peppers per month Bill's monthly budget constraint A B C D 0 Number of black beans per month Figure 6.4 Refer to Figure 6.4. Bill's budget constraint is AC. His budget constraint would shift to AB if the price of black beans increased. bell peppers decreased. black beans decreased. bell peppers increased.
Fill in the blanks in the table below Quantity of Total Hamburgers Utility Marginal Utility per Week Hamburgers Hamburgers 1 40 60 76 2 3 4 5 6 91 NSS 40 16 10 Quantity of Movies per Week 2 3 4 5 6 Total Utility Movies OC. 25 400 700 850 950 1,025 Marginal Utility Movies 400 300 O 100 50 25 Assume the price of a hamburger is $2 and the price of a movie is $5, and the consumer's income is $29 If the consumer is in equilibrium, what is the marginal utildy per last dollar spent on movies and hamburgers? OA. 10 OB. 20 OD. 50
The graph shows the budget line for a consumer who only buys cookies and magazines. If the consumer's income is $20, what is the price of a Magazine? 24 20 16 4 2 4 6 8 10 12 Magazines (number per week) dollar(s) Cookies (number per week)
Suppose a consumer has income of dollars 20 which to be spent on good B and A. Good B cost dollar 4 and good A cost dollar 2 ,then A. Determine budget equation? B.draw budget line?
Refer to Figure 3 below. The consumer chooses A on budget line I1 and chooses B on budget line 12. Based on this information, which of the following rankings is able to describe the consumer's preferences on how he/she ranks the first is highest ranked and last is the lowest-ranked? Clothing I1 12 Food Figure 3 O a. The sequence is A-B-C-D O b. The sequence is A-B-D-C O c. NO correct answers because we do not have enough information to rank all four bundles. O d. The sequence is A-D-B-C