Microeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280618
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Question
Chapter 5A, Problem 1TY
To determine
(a)
To draw the budget lines of Mr. J in three different scenarios.
Expert Solution
Explanation of Solution
A budget line is a graphical representation of all the possible combinations of goods and services which can be purchased with given income and prices. The total money income of the consumer equals the total cost in purchase of goods and services.
Budget Line is denoted by the equation:
Where,
The income of consumer is $100, and the prices of both goods are $2 each. So, the consumer can purchase 50 units of tacos and no hot dogs, 50 units of hot dogs and no tacos or any other feasible combination.
The figure below shows the budget line of this consumer:
To determine
(b)
To draw the budget lines of Mr. J in three different scenarios.
Expert Solution
Explanation of Solution
The income of consumer changes to $150 with no change in prices. So, the consumer can now purchase 75 units of either good with no unit of the other good or any other feasible combination.
The figure below shows the budget line of this consumer:
To determine
(c)
To draw the budget lines of Mr. J in three different scenarios.
Expert Solution
Explanation of Solution
The income of the consumer is $100, and price of tacos is $2.50 per unit whereas the price of hot dogs is $2 per unit.
So, the consumer can either purchase 40 units of tacos and no other good, 50 units of hot dogs and no other goods or any other feasible combination of both.
The figure below shows the budget line of this consumer:
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1
125
2
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3
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4
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5
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111
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be the resulting village Income?
Number of llamas: [ 20
Instructions: Enter your response as a whole number.
Village Income: $
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b. What is…
5. Discrimination in the labor market
The following table exhibits the name, gender, height, and minimum wage 10 people are willing to accept to work as travel nurses at a regional hospital.
Name
Gender
Height
Minimum Wage
(Inches)
(Dollars per week)
Cho F 65 $297
Frances F 64 $316
Latasha F 68 $336
Dmitri M 70 $355
Jake M 71 $374
Rosa F 65 $393
Nick M 72 $420
Brian M 71 $439
Tim M 66 $451
Alyssa F 68 $478
The lowest weekly wage that the hospital can spend in order to hire five travel nurses is ________.
Suppose the hiring director of the hospital prefers taller candidates because they think it will increase revenue, and so they impose a requirement that all newly hired travel nurses must have a height of at least 68 inches. With this mandate in place, the weekly wage rate the hospital now must pay in order to hire five travel nurses increases by ________.
Chapter 5A Solutions
Microeconomics: Principles and Policy (MindTap Course List)
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