OTHER (10015002True++46810 12 14 16CAT FOOD CANS (Cans per month)True or False: The opportunity cost of an additional can of cat food, in terms of other consumption goods, decreases once you have bought more than2 cans of cat food relative to if you had bought less than 2 cans.False18 20Which of the following bundles of goods are affordable? Check all that apply.8 cans of cat food and $15 spent on other consumption goods4 cans of cat food and $20 spent on other consumption goods2 cans of cat food and $30 spent on other consumption goods Suppose that your family has just decided to adopt a cat named Hailey. You have a monthly budget of $40 that you can choose to spend on either catfood or other consumption goods. Assume the price of a can of cat food is $5 for the first 2 cans, but then it drops to only $3 per can for eachadditional can. All other consumption goods will be treated as a composite good, so you can think of this as simply the cash left over to spend on otheritems after buying cat food.On the following graph, use the green points (triangle symbol) to graph your family's budget constraint.Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.OTHER CONSUMPTION (Amount per month)5045403530252015105Budget Constraint?

True or False: The opportunity cost of an additional can of cat food, in terms of other consumption goods, decreases once you have bought more than 2 cans of cat food relative to if you had bought less than 2 cans. True False Which of the following bundles of goods are affordable? Check all that apply. 8 cans of cat food and $15 spent on other consumption goods 4 cans of cat food and $20 spent on other consumption goods 2 cans of cat food and $30 spent on other consumption goods

True or False: The opportunity cost of an additional can of cat food, in terms of other consumption goods, decreases once you have bought more than 2 cans of cat food relative to if you had bought less than 2 cans. True False Which of the following bundles of goods are affordable? Check all that apply. 8 cans of cat food and $15 spent on other consumption goods 4 cans of cat food and $20 spent on other consumption goods 2 cans of cat food and $30 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

A consumer has $200 to divide between purchasing wine and quiche. Suppose wine costs $20 per bottle if the consumer purchases up to 5 bottles. After that, it is $10 per bottle. Suppose quiche is $10 each. Please draw the budget line. Will a consumer purchase exact 5 bottles of wine? And why? (Explain it using both the graph and words)
5. Tom is willing to forego two gallons of milk in order to try his first container of rice pudding. However, he would only give up a gallon of milk for each additional container of rice pudding. What will be the MRS on Tom's indifference curve over the range from where he consumes zero rice pudding to where he consumes one container of rice pudding? a. b. 1 C. 1/2 d. None of the above
Suppose that Olivia has $29 per week to spend on snacks—Oreo cookies and KitKat chocolate bars. A box of Oreo cookies costs $3.5. A KitKat chocolate bar costs $3.0. Total Utility Table for Oreo cookies and KitKat chocolate bars as below. Count Oreo Cookies KitKat Chocolate Bars 1 59 43 2 106 75 3 135 98 4 149 117 5 162 129 6 164 139 7 164 147 Question 1 Graph the Budget Constraint with Oreo cookies on the horizontal axis and KitKat chocolate bars on the vertical axis. Demonstrate the Budget Constraint as an equation. Insert your answer here. Question 2 Calculate Olivia’s Marginal utils for Oreo cookie consumption and KitKat chocolate bar consumption. Insert your answer here. Question 3 Calculate Olivia’s Marginal utils per $ for Oreo cookie consumption and KitKat chocolate bar consumption. Insert your answer here. Question 4 Use the utility maximizing rule to identify the consumer equilibrium. What combination of Oreo cookies and KitKat chocolate bars will maximize Olivia’s total…
Units of X 3 6 5 17 MUX 10 ww 8 6 b. What total utility will you realize? utils 2 Instructions: Enter your answers as a whole number. a. If your Income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? units of X and Price of X Units of Y units of X and c. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? 3 4 5 6 d. Using the two prices and quantitles for X, complete the table to derive the demand schedule (a table showing prices and quantities demanded) for X. Instructions: Start with the highest price first Quantity Demanded of X units of Y MUY 8 7 6 5 4 13 units of Y
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
Only d and e needed
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.
1. Isobel consumes positive quantities of both jam and juice. The price of jam is 5 cents per unit and the price of juice is 10 cents per unit. Her marginal utility of jam is 10 and her marginal utility of juice is 5. a. We can't tell whether any of the other statements are true or false without knowing the quantities she consumes. b. Without changing her total expenditures on jam and juice, she could not increase her utility. c. Without changing her total expenditures, she could increase her utility by consuming more jam and less juice. d. She should spend more money on both jam and juice. e. Without changing her total expenditures, she could increase her utility by consuming more juice and less jam.
Antonio likes to have coffee (C) and donuts (D) for breakfast every morning. He likes to dip his donuts into his coffee, so for every cup of coffee, he eats one and a half donuts. In economic terms, we can say he views one cup of coffee as a perfect complement to one and a half donuts. The price of a cup of coffee is $4.5 and the price of one donut is $2. His budget for breakfast this month is $75. (a) Write down a utility function that represents Antonio's preferences over (cups of) coffee (C) and donuts (D). (There may be many functions representing the same preferences, so you can choose either of them.) (b) How many cups of coffee (C) and donuts (D) is he going to consume? (Hint: the first order conditions will not help; draw the budget constraint and the indifference curves and look at the highest indifference curve that has a point in common with the budget constraint). (c) What is the exact value of Antonio's indirect utility for the utility function you chose in (a)?
Anthony’s Budget Line Anthony has already committed most of his income to his monthly living expenses and saving a few dollars each month. Having made these decisions, Anthony has a remaining budget of $15 a week, which he spends on two goods: coffee and magazines. The price of a cup of coffee is $2.50 and the price of a magazine is $5. 1. Construct a table showing the alternative combinations of the two goods that Anthony might purchase in a given week. 2. Use the data in your table to graph Anthony’s budget line. 3. What is the opportunity cost of each cup of coffee? What is the opportunity cost of each magazine? 4. Based on this information, do we know how many cups of coffee or magazines Anthony should buy each week? Why or why not? 5. Anthony decides he wants to upgrades to the $5 cup of coffee- the larger cup with extra flavoring! Using a graph, show how this will change Anthony’s budget line. (Note: This is most easily demonstrated by putting both budget lines on the…
Antonio buys five new college textbooks during his first year at school at a cost of $80 each. Used books cost only $50 each. When the bookstore announces that there will be a 50 percent increase in the price of new books and a 50 percent increase in the price of used books, Antonio's father offers him $200 extra. What happens to Antonio's budget line? 1.) Using the line drawing tool, graph Antonio's original budget line. Label this line L₁. 2.) Using the line drawing tool, then graph Antonio's new budget line. Label this line L₂. Carefully follow the instructions above, and only draw the required objects. CIT New Books 12- 11- 10- 9- 8- 7- 6- 5- 4- 3- 2- 1- 0- 0 1 2 3 5 6 8 9 10 11 12 Used Books
Use Figure: Budget Lines for Tangerines and Watermelons. For some time, Albert has had $5 per month to spend on tangerines and watermelons. The price of a tangerine is $0.50, and the price of a watermelon is $0.25. Which chart shows what will happen to his budget line if his income increases to $6?