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?

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?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...

See similar textbooks

Similar questions

Is it possible for total utility to increase while marginal utility diminishes? Explain.
Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
Would you expect total utility to rise or fall with additional consumption of a good? Why?
As a college student you work at a part-time job, but your parents also send you a monthly allowance. Suppose one month your parents forgot to send the check. Show graphically how your budget constraint is affected. Assuming you only buy normal goods, what would happen to your purchases of goods?
Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.
1. Suppose Frank enjoys traveling and his utility is a function of the number of airplane trips he takes and the number of bus rides he takes. His utility function is given by U(b,p) = 3b0-4p0.8. A trip on a plane costs $400, a trip on the bus costs $50 and Frank has $3,000 to spend on travel. a. Draw Frank's budget line on a graph with bus trips on the vertical axis. b. Calculate AND INTERPRET the slope of Frank's budget line. c. Draw a representative indifference curve on your graph and provide a function that describes the slope of this indifference curve (i.e., find Frank's marginal rate of substitution). What is the INTERPRETATION of the marginal
Typed plz and Asap thanks
Consider the following table, which listsJames’s marginal utility schedule for steak andhamburger meals: Given a budget of $45, how many steak and hamburgermeals will James buy per month to maximizehis total utility? What is the total utilityrealized?
ceriuppose that Isaiah has a weekly fixed budget and spends it all on haircuts and ice cream. At his current combination arof consumption, the marginal utility of the last dollar spent on haircuts is greater than the marginal utility of the last dollar spent on ice cream. Has Isaiah maximized his utility? A C E Yes, because changing his current consumption combination will reduce his total utility B No, because he can increase his total utility by purchasing more haircuts and D fewer ice creams Yes, because he has purchased 2 goods in proportion so that he can get- the maximum utility from each Yes, because he purchased the maximum possible with a limited budget No, because he can increase his total utility by purchasing fewer haircuts and more ice creams
The table below demonstrates the total utility Terrence derives from eating differentquantities of plates of thanksgiving dinner. Calculate the marginal utility for each platethen graph the total utility and marginal utility (with total utility graph above the marginalutility graph – lining up the Qty).
1) The local breakfast restaurant has a new offer: those who buy more than 10 sandwiches a month get a 50% discount on additional sandwiches. a b. Jack says he is not interested. In a different graph that includes his budget line before and after (again measure EOG on the Y axis and sandwich consumption on the X axis) and his preferences, show his sandwich consumption before and after. In your graph what indicates that he is NOT better off with this deal? Explain
Use this information to answer the following 4 questions: Marie has a weekly budget of $24,which she likes to spend on magazines and pies.24. If the price of a magazine is $4 each, what is the maximum number of magazines she couldbuy in a week?25. If the price of a pie is $12, what is the maximum number of pies she could buy in a week?26. Draw Marie’s budget constraint with pies on the horizontal axis and magazines on thevertical axis. What is the slope of the budget constraint?27. What is Marie’s opportunity cost of purchasing a pie? I need help with number 26 and 27.