Popcorn at the movies is $6 a bag. Candy at the movies is $2 a box. The opportunity cost of one bag of popcorn is decreases to $4 a bag - there's a special sale on popcorn, then the new opportunity cost for a bag of popcorn is now decreased, the opportunity cost of the next best alternative (in this case, candy) was less, therefore consumers are boxes of candy. If the price of popcorn boxes of candy. When the price of popcorn likely to purchase popcorn at the lower price. O A) two; three; less B) two; three; more C) three; two; less D) three; two; more

Popcorn at the movies is $6 a bag. Candy at the movies is $2 a box. The opportunity cost of one bag of popcorn is decreases to $4 a bag - there's a special sale on popcorn, then the new opportunity cost for a bag of popcorn is now decreased, the opportunity cost of the next best alternative (in this case, candy) was less, therefore consumers are boxes of candy. If the price of popcorn boxes of candy. When the price of popcorn likely to purchase popcorn at the lower price. O A) two; three; less B) two; three; more C) three; two; less D) three; two; more

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

What is the equation for the student's budget constraint? In your equation, use Q1 as the variable to represent the quantity of burritos and Q2 to represent the quantity of sodas. What is the opportunity cost of a burrito?
Homer Simpson has a budget of $100 allocated for the consumption of burgers and donuts. If the price of a burger is $5 and if each donut costs $2.50, then how many donut can Homer Simpson can buy with his remaining budget if he buys 10 burgers? Select one: a.12 b.10 c.16 d.20
People who misunderstand the optimal purchase rule argue that if a consumer buys so much of a good that it's price is equal to marginal utility, she could not be behaving optimally. Rather, they sat, she would be better of quitting while she was ahead, or buying a quantity such that marginal utility is much greater than the price. What's wrong with this argument? Answer with a graph
Janice really likes potatoes. Potatoes cost $1.10 per pound, and she has $6.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? pound(s) of potatoes b. What if she only had $3.00 to spend? pound(s) of potatoes
Suppose that with a budget of $210, Fatima spends $126 on sushi and $84 on bagels when sushi costs $2 per piece and bagels cost $2 per bagel. Then, after the price of bagels falls to $1 per bagel. Instructions: Enter your answers as a whole number. How many pieces of sushi and how many bagels did Fatima consume before the price change? pieces of sushi and bagels At the new prices, how much money would it have cost Fatima to buy those same quantities (that is, the quantities that she consumed before the price change)? Given that it used to take Fatima's entire $210 to buy those quantities, how big is the income effect caused by the lower price of bagels?
Q1: Zainab has a weekly budget of $48, which she likes to spend on magazines and pies. A. If the price of a magazine is $8 each, what is the maximum number of magazines she could buy in a week? B. If the price of a pie is $24, what is the maximum number of pies she could buy in a week?
Joy’s budget permits her to spend $5,000 per month on either business travel or electronicmedia to transact business. The price of business travel was initially $1,000 per trip and theprice of electronic media was $500 per hour.a) Graphically sketch Joy’s budget line. b) Graphically illustrate how a 20 percent decline in the price of business travel would impact Joy’s budget set.c) Suppose that, after the price of business travel drops, Joy’s marginal rate of substitution between electronic media and business travel -1. Is she allocating resources efficiently? Explain.
Sven makes rocking chairs for a cost of $75 each, and he sells the rocking chairs for a market price of $130 each. Deidre is willing to pay $200 for a rocking chair. However, the government believes that rocking chair manufacturers should receive more money, and set the lowest legal price rocking chairs can be sold for at $250. At the market price, Sven is willing to sell a rocking chair to Deidre, and Deidre is willing to buy a rocking chair from Sven. Unfortunately, with the new legal minimum, Sven and Deidre cannot trade with one another, and miss out on additional gains from trade. Which of the effects of a price control best fits the scenario above? A)Deadweight Loss B) Reduction in Quality C) misallocation of resources D)wasteful increase in Quanity
In a competitive market, what should consumer do if the marginal utilities/prices ratios are NOT same for all goods? Please explain by referring to MRS.
#51
What do you mean by complementary goods give two examples of the goods which are complement to each other?
If 2 tacos and 3 drinks cost $12, and 3 tacos and 2 drinks cost $13, how much does a taco cost?