Simone's initial budget constraint is defined by the following equation: $21=$3×Qburgers+$0.50×Qsoda$21=$3×Qburgers+$0.50×Qsoda If the price of the burgers decreases from $3.00 to $1.50, and the price of soda increases from $0.50 to $0.80. What is the maximum number of burgers she can purchase

Simone's initial budget constraint is defined by the following equation: $21=$3×Qburgers+$0.50×Qsoda$21=$3×Qburgers+$0.50×Qsoda If the price of the burgers decreases from $3.00 to $1.50, and the price of soda increases from $0.50 to $0.80. What is the maximum number of burgers she can purchase

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 9SQ

See similar textbooks

Related questions

Q: Suppose the price of Pizza is $10 the price of cola is $1, and the consumer's income is $60. In…

A: Budget line is the feasible combination of all goods and services that can be bought given the…

Q: If Cheerios and Milk are complements, consumers consume either one of these goods or the other.…

A: In economics, complement goods are those which are used jointly and can not be used separately. For…

Q: Refer to the budget line shown in the diagram below. If the consumer's money income is $20, the: 10…

A: Given: Consumer income=$20 Quantity of D=10 Quantity of C=5 To find: Prices of C and D.

Q: Suppose you have $48 to spend on the two items in the graph below. Q books 4 A 1 2 6 8 Q…

A: If movie costs $8 line B represents my budget constraint. If books costs $12 line B represents my…

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

A: Since you have asked multiple questions, we will answer the first question for you. If you require…

Q: The initial budget constraint (BC¡) shows the Lacostes' budget constraint when the price of a fancy…

A: A compensating variation is the amount of extra money that a consumer will need to reach to their…

Q: if the price of a good increase and the good is a normal good the budget constraint will pivot…

A: Budget constraint: It refers to the goods and services a person can buy from their budget. It is the…

Q: With the help of a graph, explain how the decrease in the income affect the consumer's choice for…

A: The demand for goods, and services comes from the buyers, or consumers of those goods, and services.…

Q: Suppose that the price of T rises by $1 and the price of L falls by $1.25. Can Paula still afford to…

A: As the price of T rises by $1 and as mentioned the price of L reduced by $1.25, it is quite possible…

Q: Explain how the budget constraint might change if income and prices of all goods increased in same…

A: Consumer income is the earnings that an individual has gain from their work or investment.

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: In the following figure, a consumer is initially in equilibrium at point C. The consumer’s income is…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Draw a budget constraint for two goods and set of indifference curves over the possible…

A: Budget constraint represents the combinations of goods that an individual could purchase with the…

Q: Emi’s available income each week for expenditures on food (F) and clothing (C) is $40. The price of…

A: 1)Within Emis consumption possibilities 5*2=10 3*10=30 10+30=40 It would lie on her budget line.

Q: In economics, we have learned that related goods’ price does matter. Given the budget constraint and…

A: Related goods are of two types complementary and substitute. Complementary commodities are those…

Q: Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…

A: Given:Cost of each homecooked meal=$150Cost of each restaurant meal=$260Weekly budget=$2500

Q: A consumer has $300 to spend on goods X and Y. The market prices of these two goods are Px = $15 and…

A: (1) A budget constraint is an economic word that refers to the total amount of products you can…

Q: Raphael consumes only cheese and crackers. True or False: Cheese and crackers can both be inferior…

A: Inferior good refers to a good whose demand decreases as income of the consumer increases. Both…

Q: Graph: Consumer Choice lan buys only chocolate-chip cookies and cashew nut milk. In year 1, lan…

A: In first year. Income = $100 Cost of cashew nut milk = $2 per quart Chocolate-chip cookies cost = $4…

Q: Brenda wants to buy a new car and has a budget of $24,000. She has just found a magazine that…

A: a) The budget line would be given as PX*X+PY*Y= M Given the price of car increases by $4000 when one…

Q: I have to create a budget constraint for two cars with the median income. However, the income is…

A: This chapter is related to budget. A budget is an estimate of income and expenditure for a future…

Q: As a college student you work at a part-time job, but your parents also send you a monthly…

A: Budget constraint line shows the different possible combination of goods that can be purchased…

Q: Suppose that beer and pretzels are unrelated goods (neither complements nor substitutes). Which of…

A: Basics:- Substitution effect occurs when two goods can replace consumption of each other. Example:-…

Q: Economists assume that the objective of consumers is to maximize their _____ Question 37 options:…

A: Utility- It is the total satisfaction that is received from the consumption of a good or service.

Q: Which budget constraint panel in Figure below shows the combined effects of an increase in the price…

A: Budget constraint is said to be a combination of goods that a consumer can purchase with given…

Q: draw the budget constraint for a person with income of $ 1000 if the price of pepsi is $5 and the…

A: A budget constraint is a term used in economics to describe all of the different combinations of…

Q: Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500.…

A: A budget line illustrates the combinations of two goods that are affordable to a consumer with a…

Q: Suppose that the price of commodity Y is $ 20 per unit while the price of commodity X is $ 15 per…

A: Any consumer have unlimited demand but have limited resources to satisfy the demand and due to the…

Q: True or false. A budget constraint, budget line or budget set is a graphical way to illustrate all…

A: It's vital to remember that the slope of the budget line equals the cost ratio of two commodities.…

Q: Lucas has $40 per week that he can spend on lemon soda (X) and chips (Y). The price of the lemon…

A: Part A: The budget constraint of Individual L is given below: QX×PX+QY×PY=Y 2QX+4QY=40 Part B:…

Q: Celine Dion, a hypothetical consumer has the budget constraints shown below. Which of Celine Dion's…

A: Budget line shifts when 1. Income of the consumer increases or decreases 2. Price of both the goods…

Q: Which budget constraint panel in Figure below shows the combined effects of an increase in the price…

A: Changes in prices lead to shift in budget curve If price increases it reduces the purchasing power…

Q: Suppose Cawlin has a budget of $90 that he spends on movies (Q) and roller skating (Qa. The price of…

A: The budget constraint of a consumer is the maximum amount of two goods which a consumer can buy…

Q: Alex distributes his monthly income of $600 between two goods, movies and food. By spending his…

A: here we calculate the budget line of Alex by using the given information and choose the correct , so…

Q: If the price of Apple increases and the price of Oranges decreases, how will it affects the budget…

A: The consumer equilibrium is that condition in which the consumer benefits the maximum from his/her…

Q: The prices of good A and good B are $3 and $2 respectively. Theodore has a budget of $29 to…

A: Price of A = 3 Price of B = 2 Income = 29 Consumption Bundle = (7 ,4 ) Budget line => 3A + 2B =…

Q: Suppose Raymond decides to cut his monthly budget in half. Coincidentally, the next time he shops,…

A: *Answer:

Q: A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5. At…

A: Answer: (1). According to the above figure, the consumer consumes 10 units of good X at point A.…

Q: Suppose the price of product X is Rs.500 and the price of product Y is Rs.1000 and one of a family…

A: Definition Budget line: It is a locus of points which shows all the possible combinations of the two…

Q: Now suppose Andrew’s income increases by 50%: That is, he has 50% more money to spend than he did…

A: The budget constraint is a limited time limit — all possible combinations of operating costs…

Q: Which budget constraint panel in Figure below shows the combined effects of an increase in the price…

A: Herez given budget constraints shows the quantity of oranges on y-axis and quantity of apples on…

Q: Suppose a person allocates a given budget between food and clothing. If food is an inferior good can…

A: Demand for Inferior goods decline with an increase in income.

Q: Why must a budget constraint have a negative slope? Income and quantity demanded are inversely…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Question

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

$21=$3×Qburgers+$0.50×Qsoda$21=$3×Qburgers+$0.50×Qsoda

If the price of the burgers decreases from $3.00 to $1.50, and the price of soda increases from $0.50 to $0.80. What is the maximum number of burgers she can purchase?

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

According to the table, what is the consumer equilibrium for a $6 budget if the price of red peppers is $1 and the price of apricots is also $1?
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?
Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. c. Show how Raymond’s budget line changes if the price of pineapples increases to $370. d.. Suppose Raymond decides to cut his monthly budget in half. Coincidentally, the next time he shops, he learns that meatloaves and pineapples are on sale for half price. Show what happens to Raymond’s budget line?
Raymond consumes meatloaves and pineapples. He has decided that hismonthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. Suppose Raymond decides to cut his monthly budget in half. Coincidentally, the next time he shops, he learns that meatloaves and pineapples are on sale for half price. Show what happens to Raymond’s budget line?
Consider the following budget constraint. Dennis spends all his money on sweaters and sweatshirts. If the price of sweaters is $15, how much money does Dennis have in his budget? Sweatshirts 8 7 6 5 4 3 2 1 1 0 1 $178 $105 $7 $75 2 3 4 5 6 7 8 9 Sweaters
Marie has a weekly budget of $24, which she likes to spend on magazines and pies. Calculate: a) If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week? b) If the price of a pie is $12, what is the maximum number of pies she could buy in a week? c) Draw Marie’s budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint? d) What is Marie’s opportunity cost of purchasing a pie? NOTE: To answer this question simply work your answer in a piece of paper, take a photo of it and upload the file. Remember that this is a problem solving question, hence you must show your work!
Suppose a person allocates a given budget between food and clothing. If food is an inferior good can you tell whether clothing is inferior or normal? Explain.
Suppose John decides to buy 4 units of food and 4 units of clothing with his $12 budget. Would his marginal utility per dollar spent on food be greater than or less than his marginal utility per dollar spent on clothing? What does this tell you about how he should substitute food for clothing if he wanted to increase his utility without spending any more money?
Marie has a weekly budget of $24, which she likes to spend on magazines and pies. If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week?
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.
Hafidh's income is $200 a month. The price of watch is $25 a show, and the price of a Jeans is $15. a) Calculate the equation for Hafidh's budget line b) Draw a graph of Hafidh's budget line with the quantity of Watches on the x-axis. c) If Hafidh's income increased from S200 to 350S. Explain and show how Hafidh's budget line changes with watches on the x-axis.
Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table below to answer the following question Quantity Total Utility of Cereal Total Utility of Books TotalUtility of Clothing 1 50 75 25 2 90 135 45 3 120 175 60 4 140 205 70 5 155 225 78 If the price of cereal is $2, the price of books is $3 and the price of clothing is $1, at what point does Douglas maximize his utility?