Quantity of cola 600 400 200 300 Quantity of pizza A consumer has a total budget of $800 to spend on pizza and cola. 1) Find the price of pizza and that of cola at the initial budget line. What is the slope of the initial budget line. 2) If the prices of the two goods remain the same, what is the new budget of the consumer? How does the consumption of the consumer change? What is the new slope of his budget line?

Quantity of cola 600 400 200 300 Quantity of pizza A consumer has a total budget of $800 to spend on pizza and cola. 1) Find the price of pizza and that of cola at the initial budget line. What is the slope of the initial budget line. 2) If the prices of the two goods remain the same, what is the new budget of the consumer? How does the consumption of the consumer change? What is the new slope of his budget line?

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

Suppose you have a budget of 30 to spend on two goods: pizzas and burgers. Each pizza is $5 while each burger is $10. Suppose you already purchased 6 pizzas. What is the maximum number of burgers that you can buy with the remaining funds in your budget?
Refer to the information provided in table below. a. If the price of a cinema ticket is 20 TL, the price of a concert ticket is 40 TL and the income is 120 TL, draw the budget line. b. Find marginal utility for each consumption level for both products and show your work in Table. c. Find the utility maximizing level of consumption bundle if the income of the consumer is 120 TL. Show the utility maximizing level of consumption for each product on the table. Explain your answer by stating the utility maximizing rule.
PLEASE HELP ME ANSWER IT AS FAST AS YOU CAN Hanan consumes two fruits: bananas (B) and apples (A). She has decided that her monthly budget for fruit will be 25 KD. Suppose that one banana costs 0.25 KD (250 Fils), while one apple costs 0.10 KD (100 Fils). a. State Hanan’s budget constraint. b. Draw a graph of Hanan’s budget line. Place the number of units of bananas on the vertical axis and the number of units of apples on the horizontal axis. c. Show graphically how Hanan’s budget line changes under the following scenarios:i. If the price of apples increases to 0.20 KD (200 Fils).ii. If the price of bananas decreases to 0.05 KD (50 Fils). iii. If her income increases to 50 KD.iv. If Hanan decides to cut her monthly budget for fruit in half and notices that bananas and apples are on sale for half price.
* Pepsi Pizza 1. Refer to Figure# 1. Which point in the figure showing a consumer's budget constraint represents the consumer's income divided by the price of a Pepsi? a. Point Y b. Point V c. Point Z d. Point X
. Kawther’s income is OMR12 a week. The price of small-sized pizza is OMR3, and the price of a fresh juice is OMR3. Calculate the equation for Kawther’s budget line and illustrate all options on the table. Draw a graph of Kawther’s budget line with the quantity of fresh juice on the x-axis. Kawther’s income is OMR12 a week. The price of small-sized pizza rises from OMR3 to OMR6, and the price of a fresh juice is unchanged at OMR3. Explain how Kawther’s budget line changes with fresh juice on the x-axis.
#10. Assume that Thomas can afford to buy as many candy bars and ice cream cones as he wants. He would continue to consume both candy bars and ice cream until the a. marginal utility of each decreases. b. marginal utility of each becomes negative. c. total utility of each becomes negative. d. marginal utility of candy bars and ice cream bars is equal. e. total utility of candy bars and ice cream bars is equal.
The graph represents a budget constraint showing the purchases of Good X and Good Y. If the price of good X falls, then budget constraint will move from budget constraint
urgent part 1 2 3 David’s utility function for good X and Y is given by U (x, y) = x2 y3 . Where Px, Py and I are the price of good X, price of good Y and consumer income respectively. i. Write the budget equation of the consumer and draw the line of this equation. ii. Using the budget line drawn in (i) show the effect of a 100 percent increase in the price of good X hold the price of good Y and income constant. iii. Using the budget line drawn in (i) show the effect of a 100 percent increase in his income holding the price of both goods constant. iv. What combination of X and Y maximizes the consumer’s utility at I=100, Px = 4 and Py = 5. v. Calculate the marginal rate of substitution between X and Y at equilibrium and interpret your results vi. Suppose all prices double and income is held constant, what is the effect of this on the optimal combination of X and Y? vii. What happens to the optimal combination of X and Y if price of good X decreases to 2 whiles the price of good Y and…
Explain how a consumer budget and product price changes impact the budget line by drawing hypothetical example budget lines.
5. The price of good x increases from 4 to 6. A consumer with an income of 120 buys 15 units of good x before the change and 10 units after. If the same consumer kept their utility constant and minimized expenditure, they would buy 8 units of x after the price change. What are the total effect, substitution effect, and income effect?
What is a budget constraint? A consumer has an income of $3000. Soda costs $3 per liter and cheese costs $6 per pound. Draw the consumer's budget constriaint with soda on the vertical axis. What is the slope of the budget constraint?
I need it in words not handwritten and don't copy from other place pleaseee do itttt your own solution