Wine (bottles per month) 6 5 3 13 ·12 3 Bread (loaves per month) The price of a bottle of wine is €1, and the price of a loaf of bread is €1. John has €6 to spend on bread and wine. a) In the figure above draw his budget line. b) How many bottles of wine does John buy? c) Now assume that the price of wine increases by €1, the price of loaf of bread remains at €1, and his income is constant at €6. Draw his new budget line in the figure above. How many bottles does he buy now?

Wine (bottles per month) 6 5 3 13 ·12 3 Bread (loaves per month) The price of a bottle of wine is €1, and the price of a loaf of bread is €1. John has €6 to spend on bread and wine. a) In the figure above draw his budget line. b) How many bottles of wine does John buy? c) Now assume that the price of wine increases by €1, the price of loaf of bread remains at €1, and his income is constant at €6. Draw his new budget line in the figure above. How many bottles does he buy now?

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 Suppose that with a budget of $160, Fatima spends $96 on sushi and $64 on bagels when sushi costs $2 per piece and bagels cost $2 per bagel. Then, after the price of bagels falls to $1 per bagel. Instructions: Enter your answers as a whole number. How many pieces of sushi and how many bagels did Fatima consume before the price change? pieces of sushi and bagels At the new prices, how much money would it have cost Fatima to buy those same quantities (that is, the quantities that she consumed before the price change)? Given that it used to take Fatima's entire $160 to buy those quantities, how big is the income effect caused by the lower price of bagels?
Monica likes to spend 30 dollars weekly on movies and burgers movie ticket costs 6 dollar each and burger cost 3 dollar each? 1. What is the maximum number of burgers she can have in a week given her budget of 30 dollar? 2. Draw monica s budget constraint line using the horizontal axis to represent the quantity of movie tickets and the vertical axis to represent the quantity of burgers. Be sure to compute and show the x and y intercepts. What is the slope of the budget constraint line you have drawn?
Table: Utility from Burgers and Milkshakes MUSHAKES BURGERS 0 SHAKES 0. -36 a. 1; 1 b. 0; 2 c. 5; 0 d. 2; 1 -32 -28 20 -16 8 6 7 MUBURGERS -45 40 -35 -30 -25 20 15 10 3. (Ref 19-12 Table: Utility from Burgers and Milkshakes) Use Table 19-12: Utility from Burgers and Milkshakes. David's marginal utilities for milkshakes and burgers are given in the table. The price of milkshakes is $2, and the price of burgers is $5. If David's income is $10, to maximize his utility, he buys shake(s) and burger(s).
Give typing answer with explanation and conclusion
A consumer's budget is 137. A unit of good x costs 3 and a unit of good y costs 4. If the consumer purchases 3 units of good y, how many units of good x can the consumer purchase? Please round your answer to two decimal places. Answer: Previous page 2028 P Type here to search 01/12/2021
The graph shows the budget line for a consumer who only buys cookies and magazines. If the consumer's income is $20, what is the price of a Magazine? 24 20 16 4 2 4 6 8 10 12 Magazines (number per week) dollar(s) Cookies (number per week)
On the diagram to the right is plotted a single bundle of 2 books and 3 DVDS consumed per month. This bundle is a point on the consumer's budget constraint. 10- 9- If the price of one book is $135.00 and one DVD is $90.00, then the consumer's level of monthly income is $ (round your answer to the neareast dollar). 8- 7- 2- 0- 9 10 Books (per month) 15 tv MacBook Air esc 80 DIL F1 F2 F4 F5 F6 F7 FB ! @ $ & * 1 2 3 4 7 8. 9 Q W E T Y tab ps lock A S F H J X C V M control option command DVDS (per month) N * *
#54
The graph shows the budget line for a consumer who only buys cookies and magazines. If the consumer's income is $20, what is the price of a cookie? Cookies (number per week) 24 20 16 8 0 2 4 6 8 10 12 Magazines (number per week)
The diagram shows Sam's budget line. The absolute value of the slope of Sam's budget line is equal to the 40 16 4 8 12 16 20 24 Coffee (pounds per week) A. quantity of coffee purchased divided by the quantity of gasoline purchased. OB. price of coffee divided by the price of gasoline. C. quantity of gasoline purchased divided by the quantity of coffee purchased. OD. price of gasoline divided by the price of coffee. 32 24 Gasoline (gallons per week)
Q43 Laurie spends all of her money buying bread and cheese. The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30. The price of bread is $3 and the price of cheese is $2. Laurie... a. Should buy more cheese and less bread to maximise her utility. b. Should buy more bread and more cheese in order to maximise her utility. c. Spends too much money on bread and cheese. d. Should buy more bread and less cheese in order to maximise her utility. e. Is buying currently the utility-maximising amount of bread and cheese.
Answer should be typed.