Suppose that your family has just decided to adopt a golden retriever named Hailey. You have a monthly budget of $50 that you can choose to spendon either dog treats or other consumption goods. Assume the price of a bag of dog treats is $4 for the first 5 bags, but then it drops to only $3 perbag for each additional bag. All other consumption goods will be treated as a composite good, so you can think of this as simply the cash left over tospend on other items after buying dog treats.On the following graph, use the blue points (circle symbol) to graph your family's budget constraint. Remember to plot from left to right. Linesegments will automatically connect the points.OTHER CONSUMPTION (Amount per month)353025D210 12 14 10DOG TREAT BAGS (Bags per month)1820Budget Constraint True or False: The opportunity cost of an additional bag of dog treats, in terms of other consumption goods, increases once you have bought morethan 5 bags of dog treats relative to if you had bought less than 5 bags.TrueFalseWhich of the following bundles of goods are affordable? Check all that apply.4 bags of dog treats and $34 spent on other consumption goods2 bags of dog treats and $30 spent on other consumption goods10 bags of dog treats and $20 spent on other consumption goods

A budget constraint signifies a cap on the financial resources accessible to a consumer for…

True or False: The opportunity cost of an additional bag of dog treats, in terms of other consumption goods, increases once you have bought more than 5 bags of dog treats relative to if you had bought less than 5 bags. True False Which of the following bundles of goods are affordable? Check all that apply. 4 bags of dog treats and $34 spent on other consumption goods 2 bags of dog treats and $30 spent on other consumption goods 10 bags of dog treats and $20 spent on other consumption goods

True or False: The opportunity cost of an additional bag of dog treats, in terms of other consumption goods, increases once you have bought more than 5 bags of dog treats relative to if you had bought less than 5 bags. True False Which of the following bundles of goods are affordable? Check all that apply. 4 bags of dog treats and $34 spent on other consumption goods 2 bags of dog treats and $30 spent on other consumption goods 10 bags of dog treats and $20 spent on other consumption goods

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

The table shows Jill’s utility schedule for pancakes and coffee # pancakes total utility from pancakes MU from last pancake # cups of coffee total utility from coffee MU from last cup of coffee 1 10 10 1 12 12 2 18 2 22 3 24 3 30 4 28 4 36 5 30 5 40 6 30 6 42 Suppose that the price of pancakes is $2/pancake, and the price of coffee is $2/cup. She has only $10 to spend on these two goods. What is her utility-maximizing bundle of pancakes and coffee? The table gives a utility schedule for Anton. Number of Doughnuts Total Utility 1 12 2 33 3 43 4 50 5 56 6 60 What important property does Anton's utility exhibit? Group of answer choices additive utility ignoring sunk cost rational optimization diminishing marginal utility
Give typing answer with explanation and conclusion 1) Suppose consumption bundle A contains 2 books and 5 candy bars, consumption bundle B contains 4 books and 4 candy bars, and consumption bundle C contains 3 books and 2 candy bars. Which of the following CANNOT be the bundle that a consumer likes the most? a.Consumption bundle B b.Consumption bundle C c.Consumption bundle A
Suppose Daisy is willing to trade 3/4 tart to Maxine for each pie that Maxine makes and sends to Daisy. Which of the following combinations of pies and tarts could Maxine not then consume, assuming Maxine specializes in making pies and Daisy specializes in making tarts? a. 4 pies and 6 tarts b. 6 pies and 5 tarts c. 8 pies and 3 tarts d. 10 pies and 1.5 tarts
The table shows Jill’s utility schedule for pancakes and coffee # pancakes total utility from pancakes MU from last pancake # cups of coffee total utility from coffee MU from last cup of coffee 1 10 10 1 12 12 2 18 2 22 3 24 3 30 4 28 4 36 5 30 5 40 6 30 6 42 What is Jill’s marginal utility of consuming the 6th pancake? The table shows Jill’s utility schedule for pancakes and coffee # pancakes total utility from pancakes MU from last pancake # cups of coffee total utility from coffee MU from last cup of coffee 1 10 10 1 12 12 2 18 2 22 3 24 3 30 4 28 4 36 5 30 5 40 6 30 6 42 Suppose that the price of pancakes is…
K Petra buys 6 smoothies and 2 album downloads a week when she has $36 to spend, the price of an album download is $9, and the price of a smoothie is $3. What is the relative price of an album download? If the price of an album download falls to $4.50, how do Petra's consumption possibilities change? The relative price of an album download is consumption possibilities A. 3 smoothies; expand B. 0.33 smoothies; shrink C. $9; expand D. 3 album downloads; expand E. 0.33 album downloads; shrink If the price of an album download falls to $4.50, Petra's. Hand written solutions are strictly prohibited.
Charlie eats only pizzas and fruit salads which are discrete goods. Each pizza has 1000kcal, and each fruit salads has 250kcal. The price of one fruit salad is £3, and the price of a pizza is £8. Charlie spends his entire budget on consumption and eats everything that he buys. He consumes no less than 1600 kcal per week and no more than 2500 kcal per week. Which of the following is true? a. His income must be between £16 and £30. b. He always spends at least half of his income on pizzas. c. He eats at least one pizza per week. d. He eats at least 2 fruit salads per week.
Ronald is an Economics students who likes to spend his leisure time of sixty hours a month doingone of two activities: watching movies at Dendy Cinemas Newtown (x), and indoor-climbing(y). A trip to the movies takes 3 hours, and each visit to the climbing gym lasts 5 hours.Further, suppose that Ronald has a fixed monthly monetary budget to spend on leisure activities. He currently exhausts this entire budget by watching two movies and visiting the climbinggym fifteen times. With this monthly budget, he would also have been able to afford exactlyseven movies and six visits to the climbing gym.Assume that both goods are perfectly divisible.(b) Show, using algebra, that Ronald’s two budget lines intersect at the bundle (x, y) =(5.5, 8.7).
4. Graph the budget line for each of the following circumstances. a. Consider Bobby's choice between watching movies on Netflix and all other consumption goods. Movies cost $5 to watch on Netflix. Bobby has cash income of $60 and a $20 Netflix gift card, which cannot be resold and must be used entirely during the current period. (Graph movies vs. money spent on all other goods here.) b. Monica purchases food and clothes and works at a clothing store. Her income is $300, the price of food is $10, and the price of clothes is $50. Monica receives an employee discount of the following form: She gets 50% off the price of all clothes items after purchasing 2 at the regular price.
need quality answer Nuoya has $256 to spend on cherry and/or coconuts. The price of cherry is $12/kg and the price of coconuts is $17/kg. What is the slope of her budget line, if cherry is on the horizontal axis and coconuts are on the vertical axis? Round your answer to two decimal places, if necessary. Hint: is slope positive or negative?
2. David gets $3 per week as an allowance to spend any way he pleases. Since he likes only peanut butter and jelly sandwiches, he spends the entire amount on peanut butter (at $0.05 per ounce) and jelly (at $0.1 per ounce). Bread is provided free of charge by a concerned neighbor. David is a picky eater and makes his sandwiches with exactly 1 ounce of jelly and 2 ounces of peanut butter. He is set in his ways and will never change these proportions. a) How much peanut and jelly will David buy with his $3 allowance per week? b) Suppose the price of jelly increases to $0.15 per ounce. How much of each commodity would be bought? c) By how much should David's allowance be increased to compensate for the rise in the price of jelly in part b? d) Graph your results of part a through part c.
3. Based on each scenario in this question, indicate whether the following statements is true or false, and briefly explain your reasoning. You may also want to use a graph in your explanation if you think it's necessary. a) Mike makes $500 per week and spends all her income on books and tea. Books cost $25 each, and Mike buys 16 each week. Tea costs $5 per cup, and Mike buys 20 cups. When Mike's income falls to $450 per week, he cuts his consumption of books by 3 books and purchases 5 more cups of tea. Based on Mike's consumption behaviors, books are an inferior good and Tea is a normal good. b) Lucy consumes food and clothing. For incomes near her current income, her income expansion path is negatively sloped. Assume that food is measured along the horizontal axis and clothing is measured along the vertical axis. Therefore, at current income levels, both food and clothing must be inferior good. c) For any normal goods, the income and substitution effects work in the same direction.…
As Table 1-2 shows, Patrick values the first unit of bread at $8, the second unit of bread at $6 and so on. If each unit of bread is priced at $5, Patrick will buy: a. One unit of bread. b. Two units of bread. c. Three units of bread. d. Four units of bread. Quantity 1st unit Dollars 8 2nd unit 6 3rd unit 4 4th unit 2