Jamani earns a weekly income of $6000. Suppose he wishes to spend this  income on two goods, games and DVDs only. A game costs $200 while a DVD costs $600.  Draw Jamani’s budget line. Putting games on the Y axis.  ii. Suppose his income increases to $9000 per week, illustrate what  happens to her budget line. iii. Suppose the price of games increase to $600, while his income and  the price of DVDs is unchanged from part (i).

Q: Centa spends $56 a month at allthemovies.com on film-noir (FN) and sci‑fi (SF) movies, which…

A: A budget constraint refers to the different combinations of two goods that a consumer can afford…

Q: Vera considered Chips and Salsa perfect complements. She had $24 to spend on chips and salsa and she…

A: The two goods here are perfect complements. Which means that the goods are consumed in fixed…

Q: Quantity 1 2 3 4 5 Pizza Total utility 95 180 255 320 375 Quantity 1 2 3 4 5 CDs Total utility 170…

A: The information about the utility table is given below. PizzaCDQuantity Total Utility Quantity Total…

Q: What is the law of diminishing utility? Please explain with a few examples.

A: Law of diminishing marginal utility says that as we consume more and more units of same good then…

Q: Consider the following budget constraint. Dennis spends all his money on sweaters and sweatshirts.…

A: Following budget constraint is given:Price of sweater = $15

Q: 8. Normal and inferior goods Larry likes going to the ballpark to watch baseball, and he also is…

A: Answer:1. The correct answers are:  His income increased while the prices of baseball and symphony…

Q: Jerry spends his entire budget on bread and gasoline. His preferences are complete, transitive,…

A: Substitution Effect: This refers to the change in quantity demanded of a good or service as a result…

Q: Rohan’s current marginal utility from consuming peanuts is 100 utils per ounce and his marginal…

A: Rohan consumes two goods, i.e., peanuts and cashews. Rohan’s current marginal utility from consuming…

Q: Ryan has $30 per week to spend on snacks. She is a bit health conscious so she prefers to buy either…

A: Money Income = $30 Price of alkaline water per liter = $5 Price of protein bar = $3 Let the liter…

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

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: Quantity of D 10+ 8 6 4 2 02 4 6 8 10 Quantity of C Refer to the budget line shown in the diagram.…

A: The budget constraint represents all the combinations of the goods and services that the consumer…

Q: The graph shows the budget line for a consumer who only buys cookies and magazines. If the…

A: Budget line is the graphical representation of different combinations of two goods that a consumer…

Q: Soccer Games $40 Baseball Games $20 Total Marginal Total Marginal Utility Utility Quantity MU/P…

A: We know that the marginal utility is the additional utility gain from consuming one more unit of a…

Q: Shen likes going to the ballpark to watch baseball, and he also is fond of going to the theater to…

A: Budget constraint depicts the combination of two goods that can be afforded by a consumer, given the…

Q: A consumer has income of $3,000. Wine costs $3 per glass, and cheese costs $6 per pound. Make a…

A: Budget constraint is the boundary of the opportunity set-all plausible combinations of goods a…

Q: According to the table, what is the consumer equilibrium for a $6 budget if the price of red peppers…

A: Marginal utility means that measures the additional satisfaction or benefit derived from consuming…

Q: 1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The price of this…

A: Income available to spend on product A is $780 Price of product A is $26 => Units purchased with…

Q: Brayden receives some utility from consuming a bottle of store-brand soda, an inferior good.…

A: Normal goods and inferior goods are concepts in economics that describe how consumer demand changes…

Q: Suppose Alex has income of $100 per month. He only consumes pizza and cell phone minutes. Illustrate…

A: Budget constraint: Budget constraint is a utility concept that is used in maximizing the utility…

Q: Joann divides her consumption between books and games. Both books and games are normal goods for…

A: The income effect refers to the change in real income due to change in the price of a good. In the…