Suppose Victoria has a budget of $66 that she spends on movies (Q1) and roller skating (Q:). The price of movie tickets recently increased from $8 per person to $11 per person, and the price of roller skating decreased from $7 to $6 per person. What is Victoria's new budget constraint? Provide your answer below: $=$×0₁ + $×0₂

Suppose Victoria has a budget of $66 that she spends on movies (Q1) and roller skating (Q:). The price of movie tickets recently increased from $8 per person to $11 per person, and the price of roller skating decreased from $7 to $6 per person. What is Victoria's new budget constraint? Provide your answer below: $=$×0₁ + $×0₂

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

In the below figure, a consumer is initially in equilibrium at point C. The consumer’s income is $250, and the budget line through point C is given by $250 = $50X + $125Y. When the consumer is given a $100 gift certificate that is good only at store X, she moves to a new equilibrium at point D. "The horizontal axis is labeled Product X. The vertical axis is labeled Product Y. A line begins at point A on the vertical axis goes down to the right and ends at point E on the horizontal axis. A second line parallel to the first one begins at point B in the first quadrant close to point A, goes down to the right and ends at point F on the horizontal axis. A horizontal line connects point A and B. An upward-facing curve labeled l-subscript 1 begins at the top left of the quadrant along the vertical axis, goes down to the right in decreasing steepness, intersects the horizontal line [AB], meets the first line at point C then continues with increasing to the right and above the line to exit…
Suppose Tim has a budget of $60 that he spends on movies (Q₁) and roller skating (Q2). The price of movie tickets recently increased from $7 per person to $10 per person, and the price of roller skating decreased from $4 to $3 per person. What is Tim's new budget constraint? Provide your answer below: ]×e+s ]xe
Huang is determining how much Coke and Pepsi he will buy. Use the information in italics to answer the bolded question below. • Huang's preferences for Coke (C) and Pepsi (P) are represented by the following utility function: U = 2C + 3P • Huang has $12 to spend on soft drinks. • The price of Coke (P) is $0.50/can. • The price of Pepsi (Pp) is now $0.75/can, which is lower than its previous price of $1.00/can. Let's say the price of Pepsi drops to $0.75/can. Which of the following statements best describes how this price drop for Pepsi impacts Huang's utility maximizing consumer choice? [Select] How is Huang's utility impacted by the decline in the price of Pepsi? [Select ]
Maya is doing her undergrad at Queen's University. She loves donuts and chocolate chip cookies (CCC). Her utility function is given by u(x, y) = √8x +5 + 2y, where x denotes her consumption of donuts and y denotes her consumption of CCC. Her budget is $10/day. The price of a donut is $1. (a) When the price of CCC is $1, what is Maya's optimal choice of donuts and CCC? (b) When the price of CCC is $8, what is Maya's optimal choice of donuts and CCC? (c) When the price of CCC increases from $1 to $8, calculate Maya's substitution effect and income effect. (d) According to your calculation in part (c), is CCC a normal good or an inferior good? Explain. Is CCC an ordinary good or a Giffen good? Explain.
Sam likes Pepsi (P) twice as much as he likes Coke (C). Assume the price of Pepsi is $3 and the price of Coke is $1 and that Sam's income is $150. What is Sam's budget constraint? Draw Sam's budget constraint and two feasible bundles of Pepsi and Coke (Pepsi on the horizontal axis) and attach the drawing to your answer.
Huang is determining how much Coke and Pepsi he will buy. Use the information in italics to answer the bolded question below. • Huang's preferences for Coke (C) and Pepsi (P) are represented by the following utility function: U = 2C + 3P • Huang has $12 to spend on soft drinks. • The price of Coke (P) is $0.50/can. • The price of Pepsi (Pp) is $1.00/can. Based on his income and prices of either good, what is the most Huang could buy of either soft drink? 1. Maximum amount of Pepsi [Select] II. Maximum amount of Coke [Select]
Chapter 22 Homework Poornima likes going to the ballpark to watch baseball, and she also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Poornima's indifference curves for going to ballgames and symphonies. With Poornima's initial budget constraint (BC B₁), she chose to go to two symphonies and six baseball games per month (point x). Then her budget constraint shifted to BC, and she chose to go to five symphonies and five ballgames per month (point Y). SYMPHONIES Of the following choices, which could have shifted to Poornima's budget constraint from BC₁ BC₂ ? Check all that apply. The prices 2 both baseball and symphony tickets decreased while her income stayed the same. Her income decreased while the prices of baseball and symphony tickets stayed the same. The price of symphony tickets increased while her income and the price of baseball tickets stayed the same. Her income increased while the prices of baseball and symphony…
In Workout problem 5.1, Charlie has a utility function U(xA, xB) = xAxB, the price of apples is $1, and the price of bananas is $2. If Charlie's income were $160, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?
PROBLEM (4) You have the Cobb-Douglas utility function u(x, y) = xy over apples (x) and plums (y) and you have $120 budget to spend and can carry at most 480 ounces in weight in your backpack going back to the dorm. Each apple costs $1 and weighs 8 ounces, and each plum costs $3 and weighs 4 ounces. You can only leave the store with a bundle of fruits you can afford and carry. (a) Drawing the relevant lines, intercepts, marking the points and hence identifying the feasible set of bundles, calculate the optimal bundle. (b) Forget about (a). If you were to choose a backpack before going on this shopping trip, for the weight constraint not to be an issue for you, how many ounces of weight capacity would you need for your backpack? HINT: That is, for this weight capacity of the backpack, you'd be able to carry the best bundle you can afford, i.e, the weight constraint is not binding for your decision. (c) Forget about (b). In (a), just before going out for shopping with your backpack to…
Bob views apples (a) and oranges (o) as perfect substitutes in his consumption. When we put apples on the horizontal axis and oranges on the vertical axis, MRSao = 0.5 for all combinations of the two goods in his indifference map. Suppose the price of apples is $2 per pound, the price of oranges is $3 per pound, and Bob's budget is $30 per week. Given Bob’s budget constraint, what is his utility maximizing choice?
Please answer fastly. I need it in 15 minutes. I will appreciate it if you could answer it quickly. Thank you! If the price of eggs were to double from $1 per egg to $2 per egg, Freddy would consume 6 fewer eggs without changing his consumption of other goods, which would he prefer? the price increase? or losing $6?
Pam has a monthly budget of £120 to be spent on T-shirts and trainers. She could afford to buy two T-shirts and two pairs of trainers. She could also buy eight T-shirts. In each case, she would be spending her entire monthly allowance. Calculate the price of a T-shirt and the price of a pair of trainers. Write down Pam’s budget equation and draw the corresponding budget line. Mark the two consumption bundles mentioned above. In your graph, clearly label the axes, the budget line, and calculate the coordinates of the points of intersection of the budget line with each axis. Interpret each of those points. Discuss how Pam’s budget set would change if the price of a T-shirt doubles. Show the relevant changes graphically. How should Pam’s income change so that she could still afford to buy two T-shirts and two pairs of trainers? Discuss how Pam’s budget constraint would change if the government imposed a tax of £3 per each pair of trainers.