•You have $400 allocated for your monthly food budget. You can either purchase meals at a restaurant (R) or buy groceries (G) to prepare food at home. • The price of restaurant meals is currently $8/meal (PR= $8). The price of groceries is $2/pound of food (PĠ = $2). for each of the following bundles of groceries and restaurant meals, identify whether the undle is affordable or unaffordable to you, given your budget constraint. Bundle A: (G, R) = (100, 25) Bundle B: (G, R) = (50, 40) Bundle C: (G, R) = (3, 180)

•You have $400 allocated for your monthly food budget. You can either purchase meals at a restaurant (R) or buy groceries (G) to prepare food at home. • The price of restaurant meals is currently $8/meal (PR= $8). The price of groceries is $2/pound of food (PĠ = $2). for each of the following bundles of groceries and restaurant meals, identify whether the undle is affordable or unaffordable to you, given your budget constraint. Bundle A: (G, R) = (100, 25) Bundle B: (G, R) = (50, 40) Bundle C: (G, R) = (3, 180)

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

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…
You 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?
In the quaint village of Chromaville, all of the residents (including their mayor) are colorblind. The mayor is decorating all the village's lampposts before their annual year-end holiday parade. She has $180 to spend on ribbon. A yard of green ribbon costs $1.50 (per yard). A yard of red ribbon costs $1.25. However, there is a sale on this week: If you buy two yards of green ribbon at the regular price, you get an additional yard of green ribbon for free! a. If yards of red ribbon are measured along the horizontal axis and yards of green ribbon are measured along the vertical axis, what is the slope of the mayor's budget constraint (during the sale)? b. What is the slope of the mayor's indifference curves (if she cannot tell the difference between red and green ribbon)? C. How many yards of red and green ribbon will the mayor purchase (during the sale)?
Lisa consumes only two goods, pizzas and burritos. In equilibrium, her marginal utility per slice of pizza is 10 and her marginal utility per burrito is 8. Instructions: Enter your answer rounded to two decimal places. If a slice of pizza costs $3, then the price of a burrito must be $
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. Can Olivia afford the following bundle: 10 units of entertainment and 15 units of other? Question 42 options: a Yes b No
34) Consider Dianna who has a $25 fast food budget per month. She can purchase salads (S), hamburgers (H), or chicken strips (C). The price of a salad is Ps=$3, the price of a hamburger is PB-$2 and the price of chicken strips is Pc $4. Fill in the table below. You will use your solutions to answer questions 34-36. # Hamburgers # Salads 1 2 2 MU Salads 36 30 c) 4; 3; 4 d) 5; 4; 5 MU/P Salads 1 2 3 4 5 MU hamburgers 5 In the optimal consumption bundle for Dianna, she will purchase chicken strips. a) 2; 1; 2 b) 3; 2; 3 28 22 16 36) Dianna total utility from her consumption bundle is a) 126 b) 504 c) 106 d) 398 MU/P # Hamburgers Chicken Strips T 2 3 7 salads, 4 5 35) Dianna's utility is maximized where the marginal utility per dollar spent on each item is equal to a) $10 b) $12 c) $14 d) $16 MU Chicken Strips 72 64 56 48 40 hamburgers, and MU/P Chicken Strips
Concert Tickets You are selling seats at an upcoming concert. The concert hall has a total of 8,500 seats, which will include reserved seats and general admission seats. You're selling reserved seats for $9 each and general admission seats for $5 each and are trying to decide how many of each kind of seat to offer. You want to make money on the concert, but also want people who can't afford the more expensive seats to come. You estimate your expenses for putting on the concert to be $50,000. You are hoping to make a profit, or at least break even. Assuming that you sell out the concert: a. Determine an equation for your revenue and profit as a function of the number of reserved seats you offer. b. Graph your revenue and profit equations on the same graph. What do you notice about the two functions? What does the slope of the lines represent in this situation? c. Determine how many reserved seats you would need to offer in order to break even. d. Determine how many reserved seats must…
Suppose Victoria has a budget of $66 that she spends on movies (Q1) and roller skating (Q₂). The price of movie tickets recently increased from $8 per person to $11 per person, and the price of roller skating decreased from $7 to $6 per person. What is Victoria's new budget constraint? Provide your answer below: FEEDBACK $=$×Q₁ + $x Q₂
If you had a vacation budget of $3000 to take vacation(s) this fall, use utility analysis theory to predict which vacation that you would participate in this fall. You need to explain why you would take this vacation instead of another one that you were considering. Assume that you must take the vacation or all life on Earth would perish. I made that last assumption to prevent you from saying that you would just spend it to pay down bills or put it in savings. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Consider the golfing question from above. Suppose that Ken values golfing for the afternoon at $65. That is, he puts a price on his happiness from golfing for the afternoon at $65. Should he go golfing? Why or why not? Yes, he should go golfing because his enjoyment ($65) is greater than the $30 price. No, he should not go golfing because the fees ($30) are greater than his lost income. Yes, he should go golfing because his enjoyment ($65) is greater than his lost income from not working ($60). No, he should not go golfing because his enjoyment ($65) is less than the cost ($90). Yes, he should go golfing. You should always go golfing when you get the chance!