Which of the following give the real value of a variable? Check all that apply. The price of a comic book is 3 mandarins in 2014. Alyssa's wage is $27.00 per hour in 2014. Alyssa's wage is 9 mandarins per hour in 2014.
Q: Anna is a Vancouverite who starts off her day drinking either a coffee or a bubble tea. From her…
A: Given data: The total income = P15 The price of coffee = P1 The price of bubble tea = P1
Q: Suppose Kate has a weekly budget of $24 to spend on seltzer water and peanut butter. Seltzer water…
A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…
Q: Suppose Olivia has an income of $800/week for which she can use to consume two goods: entertainment…
A: Olivia's income = $800 Price of Entertainment = $40 Price of Other = $25 Budget Equation: 40E + 25O…
Q: Amy lives in Detroit and loves to eat desserts. She spends her entire weekly allowance on yogurt and…
A: At the optimal consumption point, MRS = Price ratio Here, given value of MRS is 5. Price ratio =…
Q: Jaafar is trying to decide how to divide his time between his job as a stocker in the local grocery…
A: The data presented by the question above is as follows:- Per hour pay for Jaafar = $7 Per window…
Q: Consider you will organize a party. Your budget is $2000 and you will provide pagne (pchampagne-$50)…
A: Initially, the budget (M) is $2000 Price of champagne =$50 Price of oysters =$20 In the case of…
Q: Suppose Lisa initially has income of $80, the price of pizza (p₂) is $2.00 per slice, and the price…
A: Budget constraint refers to the total amount of items you can afford within a current budget. It is…
Q: Suppose Natasha consumes two goods: good 1 and good 2. Last year, the price of good 1 was $2.00 and…
A: Laspeyres Index is a consumer price index used to calculate the change in prices of a basket of…
Q: Suppose that Julia receives a $20 gift card for the local coffee shop, where she only buys lattes…
A: Price of muffins $2Price of latte is $4Gift cards of $20
Q: Mary buys cell-phone services from a company that charges a minimum of $25 per month. For that $25,…
A: Fixed Cost For first 100 minutes=$25 It is the fixed cost that Mary has to incur irrespective of the…
Q: Janet enjoys consuming both soda and coffee. Each can of soda costs PS = $1, and each cup of coffee…
A: Marginal Utility (MU): A utility is a quantitative value that computes the satisfaction received…
Q: Mika earns $232 per week which she spends entirely at the grocery store, purchasing either food or…
A: In the consumer theory, an individual maximizes his utility by consuming at a point where the…
Q: Joyce consumes x1 and x2 together in fixed proportions. She always consumes 1 unit of x2 for 2 units…
A: The utility function is the mathematical relationship between the utility and the amounts of various…
Q: Suppose Cawlin has a budget of $90 that he spends on movies Q) and roller skating (Qal. The price of…
A: a budget constraint represents all the combinations of goods and services that a consumer may…
Q: Melanie has an income of $140 which she can spend on tea at $8 per cup or used clothes at $20 per…
A: Budget line shows the graphical representation of Budget Constraints, which shows the how much…
Q: Max enjoys windsurfing and snorkeling. Max has $35 a day to spend, and he can spend as much time as…
A: Consumer theory is the study of how people allocate their money and available monetary income based…
Q: Melanie inherited $25,000, and she needs to decide how much to spend now and how much to save for…
A: Answer: Correct option: $15,000 Explanation: Melanie income in period 1 = $25,000 Now suppose that…
Q: The following graph shows Sam's marginal willingness to pay (MWTP) curve for books at the utility…
A: Consumer surplus is an important economic concept that measures the difference between what…
Q: Kevin likes going to the ballpark to watch baseball, and he also is fond of going to the theater to…
A: Budget constraint is the equation that shows how the income of the consumer puts a constraint on the…
Q: Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers.…
A:
Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…
A: Indifference curve shows the combination of two goods which give a consumer same level of…
Q: Megan likes to eat toast with hazelnut spread and drink wine. She enjoys these items in very…
A: Referenceshttps://www.investopedia.com/terms/i/indifferencecurve.asp
Q: Suppose Mia's utility function on lemon soda (X) and chips (Y) is given by U(X,Y) = X0.5Y0.5 She…
A: The bliss consumption bundle occurs when the marginal rate of technical substitution (that is slope…
Q: Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores…
A: Opportunity cost is the benefit that was forfeited because a specific alternative wasn't chosen. To…
Q: Emi’s available income each week for expenditures on food (F) and clothing (C) is $40. The price of…
A: 1)Within Emis consumption possibilities 5*2=10 3*10=30 10+30=40 It would lie on her budget line.
Q: Michelle purchase to maximize her utility. Show all working Makeup= $1 Clothes = $0.50
A: Total utility is the total satisfaction that the consumer derives from consumption of goods.Marginal…
Q: Charles lives in New York City and loves to eat desserts. He spends his entire weekly allowance on…
A: The utility is maximum at the marginal utility per dollar is equal and in other words, the MRS is…
Q: Barney sells fruits and vegetables at an outdoor market stand. He pays $20 in rent per day for the…
A: Total sales are x. The employee takes 8% of the sales, i.e., 0.08x. Barney pays rent of $20 and…
Q: Determine how much of each good Mara will consume if she has $20 and if the price of books is $10…
A: Consumers adhere to the maximum of utility i.e. seeking to get the most pleasure possible from the…
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: Suppose Mia's utility function on lemon soda (X) and chips (Y) is given by U(X,Y) = X0.5Y0.5 She…
A: Any individual preferences are represented by a utility function and any utility function is unique…
Q: Xavier has preferences between food eaten today and food eaten tomorrow of the form. U(today,…
A: Utility maximization problem : With the given prices and the income, a consumer chooses his…
Q: How Many Pints of Blackberries? The pleasure you get from your first pint of freshly picked…
A: Making a decision using marginal analysis entails weighing the additional expense required by…
Q: Terry attends college and works part-time in a drug store. She can work up to 40 hours each week and…
A: In the study of economics, the term utility can be defined as the total satisfaction or benefit that…
Q: Edmund loves lollipops and hates oatmeal. To induce him to eat enough oatmeal and to restrain him…
A: This can be defined as a concept that shows from the available fixed resources to the consumer how…
Q: Question 3: Two roommates, Annabel and Brittany, are considering purchasing a coffee-table for their…
A: Introduction Two roommates, Annabel and Brittany are considering to purchase a coffee table for…
Q: Suppose Tim has a budget of $60 that he spends on movies (Q₁) and roller skating (Q2). The price of…
A: Budget constraint: - it is the representation of different combinations of two goods that a consumer…
Q: 7. MRS and utility maximization Cho lives in Miami and loves to eat desserts. She spends her entire…
A: Utility maximization problem: With the given prices and the income, a consumer chooses his…
Q: In 2001, the typical consumer in Volcania spent $3577 on all goods and services. They spent $1967.35…
A: Total expenditure done by consumer = $3,577 Expenditure on food = $1,967.35 Percentage of budget…
Q: Alex, who was convinced that "Football is coming home", was very excited for the World Cup last…
A: INTRODUCTIONIn the midst of World Cup excitement, Alex, a passionate football enthusiast, eagerly…
Q: Huang is determining how much Coke and Pepsi he will buy. Use the information polded question below.…
A: Substitute goods are used for each other. The corner solution will exist in the market if goods are…
Alyssa spends all of her money on comic books and mandarins. In 2014, she earned $27.00 per hour, the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up to $20 each for 10 scarves. When he arrives at Macy’s at 5:00 A.M. on Black Friday, he discovers that scarves are on sale for $12 each. Hugo buys 10 scarves and uses the remaining $80 to buy himself some clothes. How much consumer surplus did Hugo receive from the tenth scarf he purchased? Assuming Hugo follows the Rational Rule for Buyers, why did Hugo only purchase 10 scarves when they were on sale? Shouldn't he have purchased more since they were such a good deal compared to what he was willing to pay? Now suppose the manager at Macy’s had 100 scarves in inventory. She decided to put the scarves on sale for $10, but an employee accidentally listed the sales price as $12. To the manager’s surprise, the store sold all 100 scarves at the $12 sales price. How much producer surplus did Macy’s…Edmund loves lollipops and hates oatmeal. To induce him to eat enough oatmeal and to restrain him from eating too many lollipops, his mum pays him 10 pence for every quart of oatmeal that he eats. The only way that he can get lollipops is to buy them at the sweet shop, where lollipops cost 5 pence each. Besides what he earns from eating oatmeal, Edmund gets an allowance of 10 pence per week. If he consumes only oatmeal and lollipops, and if his consumption bundles are graphed with quarts of oatmeal on the horizontal axis and lollipops on the vertical axis, then Edmund’s budget constraint has a slope of what?A consumer has Cobb-Douglas preferences for beer and pizza. She spends 50% of her budget on New Belgium Fat Tire ale, 20% on Coors Light, and 30% on pizza. Her budget is $500. The price of New Belgium is $9, the price of Coors is $6, and the price of pizza is $12. Suppose Coors acquires New Belgium, and now charges $7.50 for both types of beer. In order to quantify by how much this consumer is better off or worse off because of the merger: Solve for their demand functions for each good, as functions of generic prices and budget. Note that the budget shares tell you what the exponents are in the Cobb-Douglas utility function. Use the demand functions to calculate their optimal quantities demanded for each good at pre-merger prices. Plug these quantities into the utility function and calculate their utility level for the quantities demanded at pre-merger prices. Now put the demand functions (not quantities demanded) into the utility function. What budget level is required at the…
- 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.Today, you've decided to treat yourself to some dessert, so you go to the store to buy a doughnut or a cupcake. The utilities of one doughnut and one cupcake are 1212 and 2424, respectively.Given that the price of one doughnut is $6$6, what should be the price of a cupcake to get the same utility per dollar spent? Enter your answer in the box below and round to two decimal places if necessary.
- Q1: Zainab has a weekly budget of $48, which she likes to spend on magazines and pies. A. If the price of a magazine is $8 each, what is the maximum number of magazines she could buy in a week? B. If the price of a pie is $24, what is the maximum number of pies she could buy in a week?Myrtle has $400 per month to spend on Transit (X) and all other goods (Y). She currently buys a bus pass for $100 and rides 80 times per month.If she didn't buy the pass, bus rides would cost $2/ride and she would take 20 trips. She is indifferent between the $100 bus pass and $2 per ride. Myrtle is offered to join a Transit program that would allow her to pay a registration fee and then could ride the bus for $1 per trip. The most Myrtle would pay for the membership is $30 and then she would ride 40 times a month. If she were given the membership for free, she would ride the bus 45 times per month. Myrtle also reveals that she would be indifferent between a free membership (and $1 per ride) versus simply having the traditional bus pass reduced to $50 per month (flat rate), where she would again choose to ride the bus 80 times a month. Using all the information provided, draw all the relevant budget constraints and indifference curves. Be sure to label all equilibrium points and have…Marcia spends her money on tee and biscuits and sugar, which she sees as perfect complements. She eats two biscuits with every cup of tea. A cup of tea costs $2 and one biscuit costs $0.2, and she spends $33.60 on tea and biscuits every week. Use a diagram measuring the number of biscuits on the horizontal axis to show her compensated variation and equivalent variation if the price of a biscuit decreases to $0.1. What can you say about the change in her consumer surplus?.
- Suppose Olivia has an income of $800/week for which she can use to consume two goods: entertainment (E) and other (O). Furthermore, suppose the price per unit of entertainment is $40 and the price per unit of other is $25. If Olivia buys 5 units of entertainment, what is the maximum amount of other she could buy? 16 units of other 20 units of other 28 units of other None of the aboveYou have an income of $100,000. You can buy an electric car (which costs $60,000) or an internal- combustion car (which costs $30,000). The electric car has a lower mileage than an internal-combustion car: it costs you $1/km if you drive an electric car, but it costs you $2/km if you drive an internal- combustion car. You enjoy driving (measured in kilometers driven) and spending on other goods ( measured in dollars). Draw your budget line (in a diagram measuring all other goods on the vertical axis) if you buy an electric car. What is its slope and what is the economic meaning of its value?Suppose you expect to earn $10 this year and $10 next year. Each dollar you earn this year can be either spent, or saved at an interest rate of 10%. If you want to spend more than $10 this year, you can borrow money at 10% interest and repay it next year. Next year, you plan to pay oyour debts (if any), then spend all your earnings and all your savings (if any). Draw your budget line between “dollars spent this year" and “dollars spent next year". Suppose the government imposes a 50% income tax on all your earnings this year and next year (not including your interest earnings). Draw your new budget line. Suppose the government imposes a 50% sales tax on everything you buy this year and next year. Draw your new budget line. Suppose the government imposes a 50% income tax on all your earnings this year and next year, including your interest earnings. Draw your new budget line. True or False: If interest earnings are not subject to income tax, then an income tax and a sales tax…