Question 14 (2 8. R 3. T-shirts The above diagram represents Ken's budget constraint for T'shirts and movies given his $96 budget. What do you think will happen to his budget constrain (line) if the price of T-shirts increases. It will shift inward It will pivot inward along the y axis It will pivot inward along the x axis It will pivot outward along the x axis S. 6. 321 0 Movies

Question 14 (2 8. R 3. T-shirts The above diagram represents Ken's budget constraint for T'shirts and movies given his $96 budget. What do you think will happen to his budget constrain (line) if the price of T-shirts increases. It will shift inward It will pivot inward along the y axis It will pivot inward along the x axis It will pivot outward along the x axis S. 6. 321 0 Movies

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The nearby graph shows Charlie's budget constraint for purchases of shoes and purses. Number of 12 purses 10 8 6 4 2 0 Your answer Budget line with discount Budget line no discount 0.5 1 1.5 2 2.5 Number of pairs of shoes If Charlie's monthly budget for shoes and purses is $100 and they buy more than 2 purses, the price of purses is $. _. (Enter your answer as integers without the dollar sign.)
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c. Samuelson maximizes his utility by spending his entire income of $29 on video 3.5 games and cards. The price of video games is $4, and he buys 2 games. The marginal utility from the last card he buys is 42. The table represents Samuelson's marginal utility from each good. Marginal utility Quantity Video Games Cards 1 45 70 28 54 3 16 42 4 10 16 Required: i. Calculate the price of a card using the condition that Samuelson's marginal utilities per dollar are equal. ii. What is Samuelson’s total utility?
Figure#1 Pepsi Z. W Pizza Refer to Figure# 1. Which point in the figure showing a consumerâ s budget constraint represents the consumer's income divided by the price of a Pepsi?
2. Draw a budget constraint, indifference curves, and the consumer's optimal point for pizza and Pepsi. Show what happens to the budget constraint and the consumer's optimum when the price of pizza increases.
Question 23 Assume Tom's utility for tacos is as follows: Tom's utility from consuming tacos # tacos Total Utility 1 35 2 47 3 57 4 63 5 65 What is the marginal utility Tom gets from eating the 3rd taco?
Consumer choiceJo buys muffins and cupcakes at a bakery. Jo’s weekly budget for baked goods is $70. The priceof muffins is $1.25. The price of cupcakes is $1.75.a) Write down Jo’s budget constraint: express the quantity of cupcakes as a function of thequantity of muffins.
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3. If all other factors remain the same, what happens to the demand curve for coffee if there is: (a) an increase in the price of tea, (b) a decrease in family income, (c) an increase in the price of coffee? In answering these questions draw and carefully label a set of axes. On the horizontal axis of your graph, show the quantity of coffee. On the vertical axis show the price per cup of coffee. Since you do not have specific data on prices and quantities demanded, just indicate prices with a P and Quantity with a Q. Focus on the general shape and position of the curves before and after events occur. Draw new curves to show what happens in each of the circumstances given, if necessary. 3. If all other factors are unchanged, what happens to the supply curve for coffee if there is: (a) an increase in wages paid to coffee store clerks, (b) an increase in the price of coffee, or (c) an increase in the number of coffee stores? In answering these questions draw graphs, as necessary, using…
Refer to the information provided in Figure 6.4 below to answer the question(s) that follow. Number of bell peppers per month Bill's monthly budget constraint A B C D 0 Number of black beans per month Figure 6.4 Refer to Figure 6.4. Bill's budget constraint is AC. His budget constraint would shift to AB if the price of black beans increased. bell peppers decreased. black beans decreased. bell peppers increased.
Questions 6 (Demand). When the price of x1 is $8 and the price of x2 is $5, Jenny consumes 20 units of x1 and 10 units of x2. Suppose that when the price of xX2 increases to $7, Jenny consumes 25 units of x1. a) What type of goods are x1 and x2? b) How many units of x2 does Jenny consume after its price increases? Hint: Calculate her income with the first allocation of goods. Questions 7 (Slutsky Equation and Consumer Surplus). Robert's utility function for x and xa is: