YearAvocadoSliced breadRefer to the above table. The table2018$5$2provides the prices for avocados and slicedbread, the two goods in the typical2019$2$72020$2S10millenial consumer's basket. The fixed basket consists of 4 avocados and 1 loaf ofsliced bread. What was the total cost of the basket in 2019?$30$22$13$15

It is given that the basket contains two goods. Prices are different in each year but quantity of…

Year Avocado Sliced bread Refer to the above table. The table 2018 $5 $2 provides the prices for avocados and slice 2019 $2 $7 bread, the two goods in the typical millenial consumer's basket. The fixed basket consists of 4 avocados and 1 loaf of 2020 $2 S10 sliced bread. What was the total cost of the basket in 2019? $30 $22 $13 O $15

Year Avocado Sliced bread Refer to the above table. The table 2018 $5 $2 provides the prices for avocados and slice 2019 $2 $7 bread, the two goods in the typical millenial consumer's basket. The fixed basket consists of 4 avocados and 1 loaf of 2020 $2 S10 sliced bread. What was the total cost of the basket in 2019? $30 $22 $13 O $15

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. A consumer has and income of £40 to spend in two commodities. Commodity 1 costs £10 per unit, and commodity 2 costs £5 per unit. (i) What is the consumer's budget equation? If the consumer spends on his/her money on commodity 1, how much could he/she buy? Suppose the consumer was initially consuming 2 units of commodity 1 and 4 units of commodity 2. If the price of commodity 1 increases to £20 and the price of commodity 2 remains £5, by how much would the consumer's income have to rise so that he can still afford the initial bundle? (ii) Now suppose this consumer is a rational consumer and would like to maximize his/her utility. Explain how an increase in income will affect the consumer's optimal consumption bundle?
6. Explain the marginal rate of substitution. No more than 3 lines
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26. Given this diagram; what is the equilibrium level of income? a) 3/4 b) 1/4 Oc) 10 d) 100 O e) 25
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Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVS) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is $300,000. ATVS cost $6,000 each and snowmobiles cost $15,000 each. a. Draw the budget line for your purchase of new vehicles. Use the line drawing tool to draw a budget line. Properly label this line. Place end points one on horizontal and one on vertical axes. Carefully follow the instructions above, and only draw the required objects.
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7. After receiving good reviews for her work at a series of art shows, Jean Rodin considers quitting her job as a management consultant to pursue full time her hobby of sculpting. Jean figures that she can sell $100,000 worth her art each year. She found a studio that she can rent for $2,000 per month and know that materials will cost her $20,000 per year. She now earns $90,000 per year. If her calculations are correct, Jean's annual economic profits from the venture will be. a) $80,000 b) $56,000 c) $10,000 d) -$34,000
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QUESTION 10 Jeans 5 4 3 2 1 0 1 2 3 4 T-shirts 5 O 3 pairs of jeans, 1 T-shirt O 2 pairs of jeans, 4 T-shirts O 2 pairs of jeans, 3 T-shirts Budget line 6 7 8 Referring to the graph, Which of the following consumption bundles is NOT attainable? O 1 pair of jeans, 4 T-shirts