Originally the consumer faces the budget line p1x1 + p2x2 = m.What happens to the budget line if the price of good 2 increases, but the price of good 1 and income remain constant?

Q: X 12. Refer to the graph if the consumer's budget line in now the blue one and is going to consume…

A: The budget constraint is the mathematical relationship between the budget and bundles of commodities…

Q: A consumer has $10 to spend on potato chips and sodas. The potato chips cost $2 per bag and the…

A: The budget line shows the alternate combination of two goods which is affordable and can be…

Q: Suppose a consumer has an income of $40, the price of A is $5, and the price of B is $4. Which of…

A: Here we calculate the combination of consumer budget line by using the given data and choose the…

Q: In the diagram on the right the consumer's original budget line is L₁, and the consumer buys the…

A: The consumer equilibrium refers to situation where consumer maximises his utility at given level of…

Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…

A: The ability of a good to fulfill human needs is demonstrated by its utility. The utility function…

Q: Melanie has an income of $140 which she can spend on tea at $8 per cup or used clothes at $20 per…

A: Budget line shows the graphical representation of Budget Constraints, which shows the how much…

Q: Suppose that a consumer has $200 to spend on two goods: beer and pretzels. The price of beer is…

A: The ratio of two different commodities' prices is referred to as a relative price. These prices are…

Q: suppose you have a fixed income of $3000 per month and you want to allocate your budget between two…

A: Monthly income (M)= $3000Price of good x (Px) =$10 per unitPrice of good y (Py)=$20 per unit.Budget…

Q: Y) för 1 пее (g0 a. Write out Jim's utility function. b. Jim's budget constraint is 100 = 4x + 9y.…

A: (A) U = min(2X, Y) If Y is 2, X should be 1,thus U remains constant and U is utility.

Q: Howard has the utility function U(x, y) = x (1/y). His income is $30. Howard has the utility…

A: Utility function is a mathematical representation in economics that is measured by ranking the…

Q: Suppose there are two goods, x and y. If one good has a negative price, and the other good has a…

A: The objective of the question is to determine whether the slope of the budget constraint will be…

Q: Susan buys bagels and falafels. The price of a falafels is £1 and the price of a bagels is £3. Susan…

A: Price of F=1Price of B=3M=12Budget constraintPF*F+PB*B=<M1*F+3*B=<12

Q: For two goods that I consume and I like both of them, say hamburger and Ice Latte, if hamburger is…

A: Introduction: The budget line depicts all potential combinations of two commodities that a customer…

Q: Rick consumes 2 goods, Chicken McNuggets (M) with Szechuan sauce (S). His utility function is U(M,…

A: A utility-maximizing consumer chooses the bundle of goods that gives him/her maximum satisfaction.…

Q: A halving of the prices good A and good B has the same effect on the budget line as doubling the…

A: The graph that depicts all of the combinations that are possible to be brought with the given income…

Q: Present a budget line and a budget set for the consumer of two good X and Y, where the consumer has…

A: Utility function and budget constraint: The utility function refers to all those commodity bundles…

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: a) Jim buys gingerbread and candy, both of which are normal goods. When the price of gingerbread…

A: Income effect refers to the change in the quantity of good due to change int he price of that good,…

Q: Suppose that a consumer has $200 to spend on two goods: beer and pretzels. The price of beer is…

A: Given; Income of the consumer=$200 Price of beer= $6 Price of pretzels= $3

Q: Ambrose's brother Anthony has an income of $75 and a utility function U(x1, x2) = 20x1/21 + x2. The…

A: Demand defines the quantity of a good or service that customers are willing and able to buy at…

Q: The graph represents a budget constraint showing the purchases of Good X and Good Y. If the price of…

A: Budget constraint refers to limitations that individual or firm faces when trying to allocate their…

Q: A consumer has a utility function given by U = x0.25 y0.75 „He has an income of £100, the price of…

A: Answer: Given, Utility function: U=x0.25y0.75 Income M=£100Price of good xPx=£5Price of good yPy=£10…

Q: a. find her most preferred affordable bundle b. Jackson also likes hamburgers and figs. his…

A: Utility of a consumer is represented using indifference curves. The budget constraint is the…

Q: Part 4 5 6 needed David’s utility function for good X and Y is given by U (x, y) = x2 y3 . Where Px,…

A: The graphical representation of the utility function is known as the indifference curve.  The…

Q: A consumer’s budget set for two goods (X and Y) is 500 ≥ 4X + 5Y. a. The budget set is illustrated…

A: The budget constraint is given by the inequality: 500≥4X+5Y.To find the values of A (the intercept…

Q: Suppose the price of A is $2 and the price of B is $3 and that good A is plotted on the horizontal…

A: As given price of good A is $2 and price of good B is $3. After that price of good A double that…

Q: There are two goods x and y. A consumer has utility function U(x, y) = min(2x, y). The price of good…

A: A utility function in economics represents a mathematical expression that quantifies an individual's…