Suppose a student has monthly income of Rs 20,000. He consumes only two commodities Sandwich and Shawarma. The cost of Sandwich is Rs 100 each, and the cost of Shawarma is Rs 200 each. a) Draw the student’s budget constraint. What is the slope of his budget constraint? b) Suppose student gets a raise, so his income increases from Rs 20,000 to Rs 24,000. Show what happens to consumer optimal consumption choice if both Sandwich and Shawarma are normal goods. Now show what happens if Sandwich is an inferior good. c) Suppose consumer income decreases to Rs. 16,000. Show what happens if both Shawarma and Sandwich are normal goods. Now show what happens if Sandwich is an inferior good.

Q: Alice has a monthly lunch budget of 360 dollars which she spends on either burgers (B) or pizza (Z).…

A: In microeconomic analysis of utility maximization, a consumer attains his equilibrium where the…

Q: Jo buys muffins and cupcakes at a bakery. Jo’s weekly budget for baked goods is $70. The price of…

A: The budget equation measures the amount of two goods that a consumer can purchase given the prices…

Q: 5. Explain how consumer equilibrium is reached using marginal utility analysis.

A: In economics, utility is seen as a measure of happiness or satisfaction generated from the…

Q: Explain the relationship between the budget constraint and indifference curve at consumer optimum.

A: Consumer optimum is the point of consumer's equilibrium where they get maximum level of…

Q: 3. Finding the optimal combination of two goods - $2. Suppose that Larry buys Larry enjoys consuming…

A: Marginal utility is the additional utility that a consumer derives while consuming an additional…

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

A: The budget constraint is the boundary of the opportunity set all possible combinations of…

Q: The table below demonstrates the total utility Terrence derives from eating different quantities of…

A: Total utility is the total satisfaction that a consumer gets on consuming a good or service, whereas…

Q: Suppose a student has monthly income of Rs 10,000. He consumes only two commodities Sandwich and…

A: Budget constraint represents the various combinations of two goods that a consumer can purchase with…

Q: The table below gives you information about an individual's utility function. From this information,…

A: Marginal utility is the additional satisfaction or utility gained by consuming one more unit of an…

Q: 5. Janice consumes two goods, X and Y. Janice has a utility function given by the expression:…

A: Indifference curves are the graphical representation of various levels of utility. A budget line…

Q: Currently, Paula is maximizing utility by purchasing five TV dinners (T) and four Lean Cuisine Meals…

A: A budget constraint is a fundamental concept in economics that represents the limitations imposed on…

Q: 2. Tom spends all his $100 weekly income on two goods, apples and bananas. His utility function is…

A: Utility maximization problem : With the given prices and the income, a consumer chooses his…

Q: mer buys coffee (C) for $3 each and bagels (B) for $1.50 each. If she has in the slope of her budget…

A: Given that, Price of coffee (PC) = $3  Price of bagels(PB) = $1.50  Money income (M ) = $40

Q: 1. Doug consumes two goods, electricity, e, and a composite commodity z. Doug has the following…

A: Utility function : U = z2 e  Optimal point of consumption is achieved where the marginal rate of…

Q: The following table depicts a consumer's utility from consuming two goods, Fish and Chips. Units of…

A: Total utility refers to the satisfaction that a consumer attains for consuming a good or service.…

Q: A consumer has income of 15000. Masks costs $35 per mask, and sanitizers cost $70 per bottle.…

A: Budget constraint represents all combination of goods and services that consumer is able to buy if…

Q: Based on the utility maximizing rule, Is Angel maximizing their utility? OYes ONO ONot enough…

A: Utility maximisation level is the point where slope of Indifference curve is equal to the slope of…

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: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: 1) The local breakfast restaurant has a new offer: those who buy more than 10 sandwiches a month get…

A: Answer -

Q: Consumer choice Jo buys muffins and cupcakes at a bakery. Jo’s weekly budget for baked goods is $70.…

A: The combination of goods that a consumer can buy from his given income or wealth is known as a…

Q: Ann consumes only cookies and muffins. At her current consumption bundle, her marginal utility from…

A: A buyer optimizes his/her utility measured in utils when the ratio of marginal utility of last unit…

Q: 8. Suppose that you are able to consume only two goods, coffee and donuts. Use a graphical and…

A: The consumer is in equilibrium when he gets maximum satisfaction out of his expenditure. When the…

Q: Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of…

A: A utility function is a mathematical representation that quantifies an individual's preferences for…

Q: Batu consumers only cookies and books. At his current consumption bundle, his marginal utility from…

A: The condition for maximum utility is as follows.

Q: Pam has a monthly budget of £120 to be spent on T-shirts and trainers. She could afford to buy two…

A: It is given in the question that when Pam purchases 8 tshirts ( s) then the entire budget is…

Q: 5. Reggie consumes only two goods: food and shelter. On a graph with shelter on the horizontal axis…

A: A consumer's desired varied possible pairing of two commodities is represented by the indifference…

Q: 2. Leyla has a budget of €120 which she spends only on cocktails (C) and sushi boxes (S). The price…

A: Total utility and marginal utility are two related concepts in microeconomics that describe the…

Q: A consumer currentiy spends a gven budget on two goods, Xand Y, In such quantitles that the marginal…

A: Given information MU of X=10 and price of X=$5 MU of Y=8 and price of Y=$2 Consumer maximizes its…

Q: Ice Cream Utility (IC) Marginal Marginal Cannoli Utility (IC) Utility/ Utility (C) Marginal Marginal…

A: TU is the overall satisfaction that a consumer derives from consuming a certain quantity(Q) of…

Q: PLEASE HELP ME ANSWER IT AS FAST AS YOU CAN   Dalal consumes only two goods for lunch and dinner:…

A: Note: Since the question contains more than three subparts, we are going to answer first three…

Q: Answer the question on the basis of the following two schedules, which show the amounts of…

A: The objective of this question is to determine the combination of products G and H that the consumer…

Q: Assume that you only buy two goods, fish and Fanta soda. You are analyzing your personal consumption…

A: Income=$80 PFISH=$5 PFANTA= $2

Q: Bridget's preferences for apples( X) and bananas(Y) can be represented by the utility function…

A:

Q: Assume the utility U of a pair of goods x and y can be determined by U(x, y) = 4xy. Furthermore,…

A: Given Information U = 4xyBudget constraint x2 + y2 = 1

Q: Jane has a budget of $15 to spend at the local scientific store. Her two favorite items are beakers…

A: Correct : a) 3 beakers & 3 petri dishes Utility is maximized at MUx/Px = MU/Py and expenditure…

Q: Jacob has a budget of $ 18 to spend on either soda or popcorn at the movie theater. A bag of popcorn…

A: Correct : c) 3 sodas & 4 bags of popcorn  Utility is maximized when marginal utility per dollar…

Q: Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of…

A: It can be defined as the  quantitative measure of an individual level of satisfaction and preference…

Q: consider a consumer who consumes only two goods :peas and beans. She has an income of K10, the price…

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