Shifts in a budget constraint:Graham brings $30 to his local college rugby game in order to purchase lemonades and peanuts. The following diagram presents his budget constraint: According to the diagram, lemonades cost $each, and peanuts costsper bag.Adjust the diagram to show how Graham's budget constraint would change if he had brought less money to the field. (Assume the prices of lemonadesand peanuts remain the same.)Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points willsnap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. BAGS OF PEANUTS2018161412108642002468BC10LEMONADES1214161820BC

Budget constraint depicts the combination of two goods that can be afforded by a consumer, given the…

Answered: Shifts in a budget constraint: Graham…

Shifts in a budget constraint: Graham brings $30 to his local college rugby game in order to purchase lemonades and peanuts. The following diagram presents his budget constraint:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Graph Christine's budget constraint by moving the endpoints of the line segment in the grap

A: Budget constraint represent all the combinations of the goods and services that the consumer can…

Q: alex has a budget of $100 a month for a movie tickets and restaurant meals. A movie ticket will cost…

A: Income per month(M) = $100 Two goods: Movie ticket(M) & Restaurant meal(R) Price of Movie ticket…

Q: DVDs (per month) 10- 4 3- 2- 0 3 1 -2 A 3 4 5 6 7 Books (per month) 8 9 10

A: In the question above, it is given a plotted diagram of a single bundle of 2 books and 3 DVDs…

Q: Question 14 (2 8. R 3. T-shirts The above diagram represents Ken's budget constraint for T'shirts…

A: Price has an inverse relationship with quantity demanded.

Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…

A: Utility maximization was first developed by utilitarian philosophers Jeremy Bentham and John Stewart…

Q: Suppose Kate has a weekly budget of $24 to spend on seltzer water and peanut butter. Seltzer water…

A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…

Q: Draw on a graph the

A: (Lot of calculations have already been done in the previous solution so we will not repeat them…

Q: A person has $25 to spend on apples, bananas, and cherries. Their respective prices are $2, $3, and…

A: The budget constraint for a person spending $25 on apples, bananas, and cherries, with prices of $2,…

Q: Jacob receives an allowance of $6 per week. He spends all his allowance on ice cream cones, $0.50…

A: Jacob spends his allowance on ice cream and cans of lemon fizz. The price of ice cream cones is…

Q: Jody has $360 to spend on her summer vacation. She decided to use the moneyon trips to the zoo and…

A: The equation will be written as; X * P_m + Y * P_z <= $360Explanation:Creating a Spending Plan…

Q: Consider the following budget constraint. Dennis spends all his money on sweaters and sweatshirts.…

A: Following budget constraint is given:Price of sweater = $15

Q: Refer to Scenario#1. If the price of cola doubles to $3 while the income and the price of pizza are…

A: ‘Budget constraint’ represents all the combination of goods baskets that a person can purchase…

Q: The figure shows Laura's budget line. Laura buys only lilies (Y) and orchids (X). Lilies (number per…

A: People can spend their income on different goods and services. The amount spends on each good…

Q: Kevin likes going to the ballpark to watch baseball, and he also is fond of going to the theater to…

A: Budget constraint is the equation that shows how the income of the consumer puts a constraint on the…

Q: Simone's initial budget constraint is defined by the following equation:…

A: Hey champ,Welcome to this platform. Here you will get the answer with better quality in minimum…

Q: Jessie has a budget of $50 and is attempting to draw her budget constraint for purchasing cookies…

A: Price of goods can be calculated by using the following formula.

Q: suppose you have a fixed income of $3000 per month and you want to allocate your budget between two…

A: Monthly income (M)= $3000Price of good x (Px) =$10 per unitPrice of good y (Py)=$20 per unit.Budget…

Q: 18. Jake and Gonzalo are roommates and have saved a total of $360 to spend on summer entertainment.…

A: solution is provided in the picture below. i hope you got the crux of it.Explanation:i hope you got…

Q: Rick consumes 2 goods, Chicken McNuggets (M) with Szechuan sauce (S). His utility function is U(M,…

A: Rick will maximize his utility with the income he has and the prices that are prevailing. The budget…

Q: Consider a graph with paper on the x-axis and pencils on the y-axis. If the price of pencils…

A: Budget constraint shows the relationship between the two goods, their prices and the income of the…

Q: Write out the standard form of a budget constraint (meaning only with variables, no numbers). Then,…

A: The budget constraints represent all possible combinations of consumer goods that a consumer can buy…

Q: Use the graph to answer the following: (a) At the optimal consumption point, approximately how many…

A: The combination of two goods which the consumer can buy from his given income is called budget…

Q: Suppose you go to Trader Joe's to buy fruit for the week. You only like apples (A) and bananas (B)…

A: Preference is over apples and bananas.Income = $11Price of Apples = $1 Price of Bananas = 0.25 We…

Q: A consumer has income of $3,000. Wine costs $3 per glass, and cheese costs $6 per pound. Make a…

A: Budget constraint is the boundary of the opportunity set-all plausible combinations of goods a…

Q: According to the table, what is the consumer equilibrium for a $6 budget if the price of red peppers…

A: Marginal utility means that measures the additional satisfaction or benefit derived from consuming…

Q: Jacob receives an allowance of $5 per week. He spends all his allowance on ce cream cones, $0.50 per…

A: Budget constraints are the amount of goods that consumers can allocate within a specified budget…

Q: Peter loves spicy food. He consumes both Laoganma chili crisp and Texas Pete hot sauce. His annual…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Suppose the price of a donut is $2.50, the price of a cinnamon roll is $3.20, and the budget is $50.…

A: Budget line: A budget line depicts a consumer's maximum demand at a specified income level. If there…

Q: Hubert has a so-called fruit budget, which he uses to buy only apricots and nectarines. Assume the…

A: The substitution effect is an economic thought that portrays how people change beginning with one…

Q: Suppose that a consumer has $200 to spend on two goods: beer and pretzels. The price of beer is…

A: Given; Income of the consumer=$200 Price of beer= $6 Price of pretzels= $3

Q: Jody has $360 to spend on her summer vacation. She decided to use the moneyon trips to the zoo and…

A: • Original Budget Constraint:• Equation: 360=X⋅price of movie ticket+Y⋅price of zoo trip ii. Price…

Q: The graph represents a budget constraint showing the purchases of Good X and Good Y. If the price of…

A: Budget constraint refers to limitations that individual or firm faces when trying to allocate their…

Q: Suppose Carlos has a budget of $100 to spend on soft drinks and bottled water. Soft drinks cost $2…

A: Budget line can be defined as a graphical representation of all possible combinations of two items…

Q: Suppose you have $100 to spend on Skittles and M&Ms. The price of Skittles is $5.00 and the price of…

A: Every combination of products and services that a customer may purchase at the current market price…

Q: Jacob receives an allowance of $12 per week. He spends all his allowance on ice cream cones and cans…

A: Budget Constraint refers to the equation that shows the relationship between the price of the goods…

Q: Jody has $360 to spend on her summer vacation. She decided to use the moneyon trips to the zoo and…

A: (i) The original budget constraint equation is X * Price of Movie Ticket + Y * Price of Zoo Trip =…

Q: Consider a consumer's annual budget constraint for two goods: "everything else" and "tools". When…

A: A budget line is a graphical representation of a combination of all the commodities that a consumer…

Q: According to the diagram, cheeseburgers cost $ each, and seltzer costs $ per can. Adjust the diagram…

A: The budget constraint represents the combinations of goods and services that a consumer can purchase…

Q: Suppose you go to Trader Joe's to buy fruit for the week. You only like apples (A) and bananas (B)…

A: Preference is over apples and bananas.Income = $11Price of Apples = $1 Price of Bananas = 0.25 We…

Q: Suppose Frank enjoys traveling and his utility is a function of the number of airplane trips he…

A: ***Since the student has posted multiple questions, the expert is required to solve only the first…

Q: On the following graph, use the blue line (circle symbol) to draw the student's demand for Ramen…

A: A budget line shows various combinations of two goods a consumer can purchase by spending all income…

Q: What is a budget constraint? A consumer has an income of $3000. Soda costs $3 per liter and cheese…

A: Micro economics is a branch of economics which studies economics at individual level. It means that…

Q: Dwayne has $800 to spend on lemonade and bread. The price of lemonade is $25 and the price of bread…

A: Budget Constraint -Budget constraint is the total amount of items you can afford within a current…

Q: Use the graph to answer the following: 1. At the optimal consumption point, approximately how many…

A: Optimal consumption occurs where the budget line and indifference cure are tangent to each other.

Question

Shifts in a budget constraint:

Graham brings $30 to his local college rugby game in order to purchase lemonades and peanuts. The following diagram presents his budget constraint:

According to the diagram, lemonades cost $
each, and peanuts costs
per bag.
Adjust the diagram to show how Graham's budget constraint would change if he had brought less money to the field. (Assume the prices of lemonades
and peanuts remain the same.)
Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will
snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.

BAGS OF PEANUTS
20
18
16
14
12
10
8
6
4
2
0
0
2
4
6
8
BC
10
LEMONADES
12
14
16
18
20
BC

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define budget constraint:

VIEW

Step 2: Explain the answer:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

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.)
Jessie is attempting to draw her budget constraint for purchasing cookies and strawberries. At a maximum, she could consume 500 strawberries; she labels this point on the vertical axis of her budget constraint. At a maximum, she could consume 200 cookies; she labels this point on her graph. If the price of a cookie is $0.50 and her budget is $100, what is the price of a strawberry?
Your parents give you $500 per month to spend on college expenses or other personal expenses. Your parents change their mind, and decide to make a matching offer. They will give $0.25 for every $1 you spend on college expenses, but only up to $100 extra. Graph the effect of a matching allowance increase of $0.25 for each dollar you spend on college expenses, with a $100 limit, on your budget constraint.
Steve has $10 to spend on soda and candy. Soda costs $1 per bottle and candy costs $0.5 each. Use the grid below: upos 20 15 10 0 10 15 20 25 Candy Bars a) Draw a graph of Steve's budget constraint b) Draw Steve's best bundle
Describe and graph your own example of a budget constraint using two goods (don’t forget to label your axes). In your example, make sure to state what the budget is, the price of the two goods, what the slope of the budget constraint equals (make sure to include the correct sign), and interpret what the slope represents.
Jody has $360 to spend on her summer vacation. She decided to use the moneyon trips to the zoo and on tickets to the movies. Her original budget constraintis shown below. Let X represent movie tickets and Y represent trips to the zoo.i. What is the equation of the original budget constraint? ii. What is the price of a movie ticket? a trip to the zoo? iii. Assume a price change occurs and Jody now face the new budgetconstraint. What is the equation of the new budget constraint? iv. With the new budget constraint, what is the price of an amusement parkticket? a baseball ticket?
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?
Suppose the price of a donut is $2.50, the price of a cinnamon roll is $3.20, and the budget is $50. Donuts are on the x-axis and cinnamon rolls are on the y-axis. If the price of a donut increases to $3.30, what happens to the Budget Line? The budget line undergoes a parallel shift outward The budget lines undergoes a parallel shift inward The budget lines rotates outward The budget lines rotates inward
Nick brings $25 to a baseball game to spend on hot dogs and beer. The following diagram shows his budget constraint: 10 9. ВС 8. 7 BC 1 2 3 4 5 6 7 8 9 10 HOT DOGS According to the diagram, hot dogs cost $ each, and beer costs $ per glass. Adjust the diagram to show how Nick's budget constraint would change if he had brought more money to the ballpark. (Assume the prices of hot dogs and beer remain the same.) Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will 9, 4. 2. GLASSES OF BEER
Suppose Sam has a weekly budget of $48 to spend on juice and yogurt. Juice is priced at $4 per gallon, and yogurt is priced at $2 per container. gallons of juice. If he spends his entire $48 on yogurt, he can buy containers of If Sam spends his entire $48 on juice, he can buy yogurt. Use the blue line (circle symbol) to plot Sam's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of juice and yogurt that are affordable for Sam. Finally, place the black point (plus symbol) on the point on Sam's budget constraint that corresponds to a scenario in which Sam spends $24 on each good. Note: Dashed drop lines will automatically extend to both axes. ? 36 33 30 27 24 21 18 12 9 6 3 YOGURT (Containers) 0 0 + 3 6 9 12 15 18 21 JUICE (Gallons) 24 27 30 33 36 BC, ($48) 0 Affordable Region $24 on Each BC₂ ($60)
Nick has $300 a month to spend on either detailing his sports car or buying bottles of good wine. It costs $100 to have his car detailed and a bottle of wine is $50. He currently buys four bottles of wine each month and has his car detailed once. If the price of car detailing decreases to $75, Nick's budget constraint will: