Assume we are measuring coffee on the horizontal axis and flowers on the vertical axis. The government introduces a tax on coffee consumed beyond C* units. What will happento the budget constraint?O The budget constraint will become kinked at C* units of coffee and will have a flatter slope at units beyond C*.O The budget constraint will pivot inwards around the horizontal intercept.O The budget constraint will pivot outwards around the vertical intercept.O The budget constraint will shift outwards and become steeper.O The budget constraint will become kinked at C* units of coffee and will have a steeper slope at units beyond C*.O No answer.

ssume we are measuring coffee on the horizontal axis and flowers on the vertical axis. The government introduces a tax on coffee consumed beyond C units. What will happen the budget constraint? The budget constraint will become kinked at C* units of coffee and will have a flatter slope at units beyond C". The budget constraint will pivot inwards around the horizontal intercept. O The budget constraint will pivot outwards around the vertical intercept. O The budget constraint will shift outwards and become steeper. O The budget constraint will become kinked at C* units of coffee and will have a steeper slope at units beyond C.

ssume we are measuring coffee on the horizontal axis and flowers on the vertical axis. The government introduces a tax on coffee consumed beyond C units. What will happen the budget constraint? The budget constraint will become kinked at C* units of coffee and will have a flatter slope at units beyond C". The budget constraint will pivot inwards around the horizontal intercept. O The budget constraint will pivot outwards around the vertical intercept. O The budget constraint will shift outwards and become steeper. O The budget constraint will become kinked at C* units of coffee and will have a steeper slope at units beyond C.

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

QUESTION 9 Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Molly's montly budget constraint Number of CDs per month 0 F Number of DVDs per month Figure 6.5 Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases and the price of CDs increases, her new budget constraint could be O CD. BD. O AD. O Both BD and AD are correct.
Question 25 The individual's budget constraint is a. the amount of money she has in the bank c. the maximum amount one good she can consume given her consumption of other goods O d. a line depicting all the possible budgets an individual could have at various occupations
Which budget constraint panel in Figure below shows the combined effects of an increase in the price of oranges and a decrease in the price of apples? (e) (c) Oranges (a) (b) (d) Oranges Oranges Oranges Oranges Apples Apples Apples Apples Apples O panel a panel b panel c O panel e O none of the above
A consumer's budget is 137. A unit of good x costs 3 and a unit of good y costs 4. If the consumer purchases 3 units of good y, how many units of good x can the consumer purchase? Please round your answer to two decimal places. Answer: Previous page 2028 P Type here to search 01/12/2021
a. Create a graph with X on the horizontal axis and Y on the vertical axis. The equation of the budget constraint is: 5X + 10Y = 500 We can rearrange this to solve for Y: Y = (500 - 5X)/10 b. Plot a graph with the point (50, 25), where they spend half their income on each good. c. If the household income doubles to Rs. 1,000, the new budget constraint would be: 5X + 10Y = 1000 Rearranging for Y: Y = (1000 - 5X)/10 d. If after the change the household spends Rs. 200 on Y and Rs. 800 on X, we can plug these values into the budget constraint to solve for X and Y: 5X + 10Y = 1000 5(800) + 10(200) = 1000 This equation is not satisfied, so we can conclude that the household cannot spend Rs. 800 on X and Rs. 200 on Y with the new budget constraint.
A budget constraint line represents the different combinations of two goods that will yield the consumer the same satisfaction. O prices that will yield the consumer the same satisfaction. prices the consumer faces when deciding what goods to consume. two goods the consumer is able to purchase.
draw a budget constraint and indifference curves for pizza and pepsi .show what happens to budget constraint and consumer's optimum when the price of pizza rises .in your diagram, decompose the change into an income effect and a substitution effect
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?
Consider the following graph. Assume that income increases, and the budget constraint line shifts to the right. The utility-maximizing choice on the original budget constraint is A. Enable ZoomPan
Refer to the information provided in Figure below to answer the question that follow. Lingle's monthly budget constraint 40 A OD B E 40 Number of gardenburgers per month Refer to Figure The slope of budget constraint AC is Select one: a. indeterminate from this information because prices are not given. b. -1/2 C.-2 d. -1 Number of beers per month
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
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.