Question 10 1.75 pts Please refer to the following information to answer the question (in bold) below: Raghav's annual income is $40,000. He consumes credit hours (CH) of undergraduate education at Niagara University and all other goods (AOG). Each unit of all other goods costs him $1/unit. Assume he has rational preferences. Besides the "Simple" plan, NU also offers the "Standard" tuition plan to students. Under the "Standard" plan: • Tuition costs $3,000 per credit hour for students enrolled in fewer than 12 credit hours • For students enrolled in at least 12 credit hours and no more than 18 credit hours, students pay a flat "full time" tuition price of $36,000. 。 Hint! Please note that the "full time" tuition price of $36,000 covers ALL the credit hours a student enrolls in, up to the 18 credit hour maximum. Students do NOT pay both a $36,000 flat fee AND a 3,000 per credit hour for their first 12 credit hours. They only pay the $36,000 flat price. • For students enrolled in more than 18 credit hours, they pay an extra $2,000 per credit hour surcharge for those credit hours beyond the 18 credit hours. What are the most credit hours Raghav can enroll in under the NU "Standard" plan, given his budget constraint? 16 credit hours 18 credit hours 19 credit hours 20 credit hours 21 credit hours 22 credit hours
Question 10 1.75 pts Please refer to the following information to answer the question (in bold) below: Raghav's annual income is $40,000. He consumes credit hours (CH) of undergraduate education at Niagara University and all other goods (AOG). Each unit of all other goods costs him $1/unit. Assume he has rational preferences. Besides the "Simple" plan, NU also offers the "Standard" tuition plan to students. Under the "Standard" plan: • Tuition costs $3,000 per credit hour for students enrolled in fewer than 12 credit hours • For students enrolled in at least 12 credit hours and no more than 18 credit hours, students pay a flat "full time" tuition price of $36,000. 。 Hint! Please note that the "full time" tuition price of $36,000 covers ALL the credit hours a student enrolls in, up to the 18 credit hour maximum. Students do NOT pay both a $36,000 flat fee AND a 3,000 per credit hour for their first 12 credit hours. They only pay the $36,000 flat price. • For students enrolled in more than 18 credit hours, they pay an extra $2,000 per credit hour surcharge for those credit hours beyond the 18 credit hours. What are the most credit hours Raghav can enroll in under the NU "Standard" plan, given his budget constraint? 16 credit hours 18 credit hours 19 credit hours 20 credit hours 21 credit hours 22 credit hours
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 7QP
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Transcribed Image Text:Question 10
1.75 pts
Please refer to the following information to answer the question (in bold) below:
Raghav's annual income is $40,000. He consumes credit hours (CH) of undergraduate education at Niagara University and all other
goods (AOG). Each unit of all other goods costs him $1/unit. Assume he has rational preferences.
Besides the "Simple" plan, NU also offers the "Standard" tuition plan to students.
Under the "Standard" plan:
• Tuition costs $3,000 per credit hour for students enrolled in fewer than 12 credit hours
• For students enrolled in at least 12 credit hours and no more than 18 credit hours, students pay a flat "full time" tuition
price of $36,000.
。 Hint! Please note that the "full time" tuition price of $36,000 covers ALL the credit hours a student enrolls in, up to the 18
credit hour maximum. Students do NOT pay both a $36,000 flat fee AND a 3,000 per credit hour for their first 12 credit
hours. They only pay the $36,000 flat price.
• For students enrolled in more than 18 credit hours, they pay an extra $2,000 per credit hour surcharge for those credit
hours beyond the 18 credit hours.
What are the most credit hours Raghav can enroll in under the NU "Standard" plan, given his budget constraint?
16 credit hours
18 credit hours
19 credit hours
20 credit hours
21 credit hours
22 credit hours
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