Please refer to the following information to answer the question (in bold) below: • You have $400 allocated for your monthly food budget. • You can either purchase meals at a restaurant (R) or buy groceries (G) to prepare food at home. • The price of restaurant meals is $8/meal (PR = $8). • The price of groceries is $2/pound of food (PG= $2). Suppose that the price of restaurant meals rises to $10/meal (PR = $10). Choose the answer below that best characterizes the accuracy or inaccuracy of the following statements: A. If we assume that restaurant meals are the vertical axis good, the increase in PR flattens the slope of the budget constraint. B. Compared to when PR = $8, the y-intercept of the new budget constraint is larger in value. C. Relative to when PR = $8, the consumer can now buy more groceries for each restaurant meals she or he forgoes purchasing. D. The affordable set when PR = $10 includes more bundles than when PR = $8. Statements A and B are True, C and D are False Statements A and C are True, B and D are False Statement A and D are True, B and C are False Statement B and D are True, A and C are False All of the Statements are True

Please refer to the following information to answer the question (in bold) below: • You have $400 allocated for your monthly food budget. • You can either purchase meals at a restaurant (R) or buy groceries (G) to prepare food at home. • The price of restaurant meals is $8/meal (PR = $8). • The price of groceries is $2/pound of food (PG= $2). Suppose that the price of restaurant meals rises to $10/meal (PR = $10). Choose the answer below that best characterizes the accuracy or inaccuracy of the following statements: A. If we assume that restaurant meals are the vertical axis good, the increase in PR flattens the slope of the budget constraint. B. Compared to when PR = $8, the y-intercept of the new budget constraint is larger in value. C. Relative to when PR = $8, the consumer can now buy more groceries for each restaurant meals she or he forgoes purchasing. D. The affordable set when PR = $10 includes more bundles than when PR = $8. Statements A and B are True, C and D are False Statements A and C are True, B and D are False Statement A and D are True, B and C are False Statement B and D are True, A and C are False All of the Statements are True

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

You have an income of $100,000. You can buy an electric car (which costs $60,000) or an internal- combustion car (which costs $30,000). The electric car has a lower mileage than an internal-combustion car: it costs you $1/km if you drive an electric car, but it costs you $2/km if you drive an internal- combustion car. You enjoy driving (measured in kilometers driven) and spending on other goods ( measured in dollars). Draw your budget line (in a diagram measuring all other goods on the vertical axis) if you buy an electric car. What is its slope and what is the economic meaning of its value?
Huang is determining how much Coke and Pepsi he will buy. Use the information in italics to answer the bolded question below. • Huang's preferences for Coke (C) and Pepsi (P) are represented by the following utility function: • Huang has $12 to spend on soft drinks. • The price of Coke (P) is $0.50/can. • The price of Pepsi (Pp) is $1.00/can. U = 2C + 3P Based on his budget constraint and preferences, which of the following statements best describes Huang's utility maximizing choice of Coke and Pepsi? [Select] What level of utility does he enjoy from this choice? [Select ] ()
could you answer part e please
Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $5.00 and $2.00 respectively. What would be your optimal consumption bundle?
Please help with the following question
pats >125 per week to spend on peanut butter and carrots in the fixed ratio of 1 pound of peanut butter to 4 pounds of carrots. Peanut butter costs $1 per pound and carrots cost $0.5 per pound Suppose the price of carrots were to rise from $05 to $1 per pound. By how much will Tom have to reduce his consumption of carrots
Huang is determining how much Coke and Pepsi he will buy. Use the information in italics to answer the bolded question below. • Huang's preferences for Coke (C) and Pepsi (P) are represented by the following utility function: U = 2C + 3P • Huang has $12 to spend on soft drinks. • The price of Coke (P) is $0.50/can. • The price of Pepsi (Pp) is $1.00/can. Which of the following statements referring to Huang's preferences is incorrect. O Huang does NOT experience diminishing MRS. If Huang gives up two cans of Pepsi, he needs to purchase 3 cans of Coke to remain equally satisfied. Pepsi and Coke are perfect substitutes for Huang O None of the above statements are incorrect.
34) Consider Dianna who has a $25 fast food budget per month. She can purchase salads (S), hamburgers (H), or chicken strips (C). The price of a salad is Ps=$3, the price of a hamburger is PB-$2 and the price of chicken strips is Pc $4. Fill in the table below. You will use your solutions to answer questions 34-36. # Hamburgers # Salads 1 2 2 MU Salads 36 30 c) 4; 3; 4 d) 5; 4; 5 MU/P Salads 1 2 3 4 5 MU hamburgers 5 In the optimal consumption bundle for Dianna, she will purchase chicken strips. a) 2; 1; 2 b) 3; 2; 3 28 22 16 36) Dianna total utility from her consumption bundle is a) 126 b) 504 c) 106 d) 398 MU/P # Hamburgers Chicken Strips T 2 3 7 salads, 4 5 35) Dianna's utility is maximized where the marginal utility per dollar spent on each item is equal to a) $10 b) $12 c) $14 d) $16 MU Chicken Strips 72 64 56 48 40 hamburgers, and MU/P Chicken Strips
Assume that a consumer can buy only two goods, X and Y, and has an income of $13,000. The price of X is $60 and the price of Y is $140. What is the slope of the budget line if X is measured horizontally and Y is measured vertically? Note that you will need to include a negative sign in your answer. If needed, round your answer to the nearest two decimal places.
Suppose Victoria has a budget of $66 that she spends on movies (Q1) and roller skating (Q₂). The price of movie tickets recently increased from $8 per person to $11 per person, and the price of roller skating decreased from $7 to $6 per person. What is Victoria's new budget constraint? Provide your answer below: FEEDBACK $=$×Q₁ + $x Q₂