The consumer's initial budget line is I with income equal to S3000. The budget line then shifts from I to II because of a change in the prices of goods X and Y but no change in income. The quantity of good X at point “B" is equal to and at point "C" is equal to

The consumer's initial budget line is I with income equal to S3000. The budget line then shifts from I to II because of a change in the prices of goods X and Y but no change in income. The quantity of good X at point “B" is equal to and at point "C" is equal to

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 12PA

See similar textbooks

Related questions

Q: Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y…

A: The advantage is the condition that benefits or add a favorable position in the situation.

Q: Suppose the domestic supply (Qs) and demand (Qp) for skateboards in the United States is represented…

A: We are going to discuss the impact of imports on the domestic market.

Q: Consider a consumer with the following utility function for goods X and Y: U(x,y) = 2 - 1 y А. What…

A: Marginal utility is that the added satisfaction that a consumer gets from having another unit of…

Q: 4. Consider a community with 80 vacant parcels. The value of developed parcels can be represented by…

A: Profits: It refers to the excess amount of revenue. The change in the level of profit will increase…

Q: Consider the following indifference curves. U1 U3 U4 U2 Which indifference curves violate the…

A: Convexity of indifference curves imply averages are preferred over extremes. It implies that…

Q: Part I. You are the new owner of a candle shop in Greenwood Mall. Your first duty as new owner and…

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

Q: Y 500 Budget line I 300 A 200 Budget line II X 100 в с The consumer's initial budget line is I with…

A: A graphical representation in which all possible combinations of two products are purchased with…

Q: 7. Incidence and Welfare Effects of a Tax The demand and supply curves for the perfectly competitive…

A: Disclaimer :- As you posted multipart questions we are supposed to solve the first 3 parts as per…

Q: QUESTION 31 Who has the comparative advantage the U.S. or the World in producing airplanes based…

A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…

Q: The (own) price elasticity of demand for four different demand curves for a price range between $1…

A: Elasticity is related to total revenue. 1-Inelastic demand-Price increase total Revenue increases…

Q: Discuss how your priorities would affect the underlying interests ofbothyour team and the other…

A: Objective Alignment:Positive Impact: Teams are more aware of how their work affects the overall…

Q: I need to know where to start in Excel

A: Here is the process of setting up the Excel spreadsheet and creating the necessary charts with a…

Q: Directions: Label the different parts of the supply curve below. Increase in supply Quantity of…

A: Supply curve is upward sloping curve which shows positive relation between price and quantity…

Q: Which indifference curves violate the assumption of monotonicity? U3 only. U1 and U3. U1, U3 and U4.…

A: The assumption of monotonicity is that the indifference curve is negatively sloped. If the…

Q: If a small country imposes a tariff on imported motorcycles

A: Tariff is helpful for the domestic producer and it will create negative impact on domestic consider.

Q: Research an instance of an actual firm that has been engaged in cost-cutting measures. What actions…

A: We are considering an example of Dell EMC. Cost-cutting refers to measures executed by an…

Q: Consider the following figure showing three budget lines corresponding to a change in income (with…

A: Income elasticity of demand: - Income elasticity of demand measures the responsiveness of change in…

Q: A company manufacturing calculators has a capacity of producing 200 calculators a month. The…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: c. Now suppose that the monopolist can perfectly price discriminate. What quantity will it produce?…

A: Perfect price discrimination monopolist produces such quantity where price equals marginal cost and…

Q: The following figure shows the production-possibility curves for Canada (AB) and the rest of the…

A: We are going to discuss the opportunity cost method to understand whether the trade is beneficial…

Q: What is the future worth of the following series of payments? a) $30,000 at the end of each…

A: Part A PV annuity = 30000 n = 5 years r = 8% Part B PV annuity = 50000 n = 10 years r = 6% Part…

Q: Which one of the following statements is correct? * In a monetary economy there always ha: be a…

A: As per the guidelines answer is given to three sub-parts: 1) "Money can never lose its usefulness as…

Q: Explain the Trial-and-error method?

A: Trial and error are an integral problem-solving process. It is characterized by frequent, varied…

Q: P, is the price of good X, P, is the price of good Y, and M is income. Currently, P, = $2, P, = $4,…

A: X = 200-4Px +1/2P2y+3M X = 200 - 4*2 +1/2(4)2+3*100 = 500 [A] (Own) Price elasticity =…

Q: Discuss the ethical principles in business.

A: The ethics in business implies general ideas of ethics to the behavior of the business. The ethics…

Q: 1. Draw a production possibility frontier (make the scale on both axis the same). The economy is…

A: Private goods are rival and excludable goods. This means that when one person consumes a private…

Q: Consider a consumer who is choosing between All Other Goods (AOG) and food. Suppose the market price…

A: A consumer makes a decision between food and All Other Goods (AOG).Market cost of AOG: $1 per unit.…

Q: Consider the following figure showing three budget lines corresponding to a change in income (with…

A: The Engel curve shows the relationship between the income and the demand of a particular good…

Q: Question 1 Value of Money MS, MS, 2 Money Demand 1 Quantity of Money If the Money Supply is MS, and…

A: Answer (1). According to the above figure, when the value of money is 2 the money supply is greater…

Q: Describe the Trial and Error Process?

A: Answer - Trial and Error Process - This is problem solving method under this individual use multiple…

Q: Clancy lives in San Francisco and runs a business that sells pianos. In an average year, he receives…

A: Explicit cost- Explicit business costs include all transactions relating to production factors used…

Q: The schedule below shows the number of packages of bagels bought in Davis, CA every day at various…

A: ***Since the student has asked for some specific subparts to be solved, the expert is required to…

Q: Using the graph below, determine if the firm should shut down or stay open in the short run and why.

A: From the graph it is easy to understand the firm is earning profit or in a position of facing loss.

Q: A pallette conveyor system used to transport pallettes of product at the Browning Harvey plant in…

A: Economic life, in the context of finance and business, refers to the estimated period during which…

Question

Hello, I am having issues solving this practice problem.

500
Budget line I
300
A
200
Budget line II
100 в С
The consumer's initial budget line is I with income equal to $3000. The budget line then shifts
from I to II because of a change in the prices of goods X and Y but no change in income.
The quantity of good X at point "B" is equal to
and at point "C" is equal to

Insufficient information
166.7; 300
150 ; 166.7
200 ; 300
166.7 ; 500

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

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

As a college student you work at a part-time job, but your parents also send you a monthly allowance. Suppose one month your parents forgot to send the check. Show graphically how your budget constraint is affected. Assuming you only buy normal goods, what would happen to your purchases of goods?
Good X A B IC2 ICG Good Y The rotation of the budget line from red to blue depicts an increase in monetary income. The rotation of the budget line from red to blue depicts a decrease in monetary income. O The rotation of the budget line from red to blue depicts an increase in the price of X. O The rotation of the budget line from red to blue depicts an increase in the price of Y. O The rotation of the budget line from red to blue depicts an decrease in the price of X. O The rotation of the budget line from red to blue depicts an decrease in the price of Y. After the budget line rotates from red to blue, the amount of X consumed will increase. After the budget line rotates from red to blue, the amount of Y consumed will increase. O After the budget line rotates from red to blue, the amount of Y consumed will decrease. O After the budget line rotates from red to blue, the amount of X consumed will decrease. O After the budget line rotates from red to blue, the person will move from A to…
consider a consumer who consumes only two goods :peas and beans. She has an income of K10, the price of beans is k0.20 while the price of peas is0.40.a) Draw the budget lineb) Suppose that the consumer consumes 30kg of beans. Assuming that she spends all her income, how many kgs of peas is she going to consume?c) Assume that the price of peas falls from k0.40 to k0.20. Assuming that the consumer still consumes 30kg of beans, find the new quantity of peas.d) After the decrease in price of peas to k0.20 assume that the consumer is just as well off as she was in (b) if she has an income of K7.60. However, with that income and the new price of peas, she would have consumed 20kg of beans. Find the quantity of peas she would have consumed in this case. Show it on the graph.
Considering the following Diagram of consumer equilibrium, answer the following questions. If consumer has $100 to spend on X and Y at Budget line DE, what are the prices of X and Y products. What combination of X & Y maximizes the consumer’s total utility at Budget line DE? Why a consumer has moved to point B on Budget line DE1 from Point A of Budget line DE? Derive the demand curve of X product. What is relationship between X and Y products
Q36
Total utility O diminished as the quantity of a good increases increases as long as more goods are acquired increases as long as marginal utility increases O increases as long as marginal utility is positive diminishes as consumption of some good rises
For normal goodsA) the substitution effect of a price decrease will decrease the quantity of the good demanded while theincome effect of a price decrease will increase the quantity of the good demanded.B) the substitution and income effects of a price decrease will both increase the quantity of the gooddemanded.C) the substitution and income effects of a price decrease will both decrease the quantity of the gooddemanded.D) the substitution effect of a price decrease will increase the quantity of the good demanded while theincome effect of a price decrease will decrease the quantity of the good demanded.
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.
Only typed answer
Need help with drawing the demand curve
Please explain in detail, in relation to microe
If we have money, we buy goods and services to satisfy our needs. In economics, thesatisfaction that we get from the consumption of goods and services is called utility. Usea utility graph to explain what happen to the utility when you keep on increasing thenumber of units consumed. Also explain what happens to the utility when you keep onincreasing the number of units consumed. Also explain what happens to the additionalutility (i.e. additional satisfaction) when you increase your consumption by one unit