Jackson has an income of $600 and he spends all of his income on corn and fish. The price of corn is $30, and the price of fish is $20. Which of the following combinations I fish represents a point that would lie to the exterior (outside) of Jackson's budget constraint? orn and 10 fish rn and 20 fish orn and 15 fish orn and 0 fish
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- Why does a change in income cause a parallel shift in the budget constraint?QUESTION 5 In a farmer's market, the price of tomatoes is $5/lb and the price of cucumber is $6/lb. The marginal rate of substitution of tomatoes for cucumber MRS=2C/3T in Bob's concumption bundle. What is the equilibrium ratio of cucmber (C) and tomatoes (T) in the consumption bundle? C/T=5/4 C/T=2/3 C/T=6/5 C/T=3/2 QUESTION 6 In a farmer's market, the price of tomatoes is $5/lb and the price of cucumber is $6/lb. The marginal rate of substitution of tomatoes for cucumber MRS=2C/3T in Bob's concumption bundle. Bob uses $20 to purchase tomatoes and cucumber. He will buy_ Ib tomatoes and Ib cucumber.Graham brings $20 to his local college hockey game in order to purchase cheeseburgers and seltzer. The following diagram presents his budget constraint: CANS OF SELTZER 10 6 B 5 4 3 r 0 1 2 BC 4 5 6 CHEESEBURGERS 7 According to the diagram, cheeseburgers cost $ 8 9 10 BC each, and seltzer costs $ (?) per can. Adjust the diagram to show how Graham's budget constraint would change if the price of seltzer decreased. (Assume the price of cheeseburgers and Graham's income remain the same.) Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.
- Matt has $19 in income that he devotes entirely towards caffeine purchases, specifically coffee and tea. Tea costs $3/cup and coffee costs $4/cup. Also, tea is subject to a quantity tax of $4/cup, and coffee is subject to a value tax of 0%. By how much will the slope of Matt's budget constraint change if his income were to increase from $19 to $37? (Note: I'm looking for the change in the slope, so subtract the old slope from the new slope to get your answer) (Note: The numbers change between questions, so read them carefully)Matt has $14 in income that he devotes entirely towards caffeine purchases, specifically coffee and tea. Tea costs $4/cup and coffee costs $5/cup. Also, tea is subject to a quantity tax of $1/cup, and coffee is subject to a value tax of 0%. By how much will the slope of Matt's budget constraint change if his income were to increase from $14 to $37?Marie has a weekly budget of $24, which she likes to spend on magazines and pies. Calculate: a) If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week? b) If the price of a pie is $12, what is the maximum number of pies she could buy in a week? c) Draw Marie’s budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint? d) What is Marie’s opportunity cost of purchasing a pie? NOTE: To answer this question simply work your answer in a piece of paper, take a photo of it and upload the file. Remember that this is a problem solving question, hence you must show your work!
- Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a restaurant for $260 per meal. Her weekly budget is $2500. Draw Mary’s budget constraint, (put home cooked meal on the horizontal axis) showing the trade-off between a home cooked meal and eating at a restaurantBasil is a broke college student who consumes only coffee and pizza. No one is really sure how he can survive on those two goods alone, but somehow he does. Coffee is $2 per cup, and pizza is $5 per pizza. Basil's weekly budget constraint is shown below. On the graph below show how his budget constraint would change if Basil gets an additional $10 per week from his grandmother. Coffee (cups per week) 15 14 13 3 210 000 654 120 w 2 -N Budget Constraint 0 01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pizza (number per week)Nick brings $25 to a baseball game to spend on hot dogs and beer. The following diagram shows his budget constraint: 10 9. ВС 8. 7 BC 1 2 3 4 5 6 7 8 9 10 HOT DOGS According to the diagram, hot dogs cost $ each, and beer costs $ per glass. Adjust the diagram to show how Nick's budget constraint would change if he had brought more money to the ballpark. (Assume the prices of hot dogs and beer remain the same.) Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will 9, 4. 2. GLASSES OF BEER
- Simone's initial budget constraint is defined by the following equation: $21=$3×Qburgers+$0.50×Qsoda$21=$3×Qburgers+$0.50×Qsoda If the price of the burgers decreases from $3.00 to $1.50, and the price of soda increases from $0.50 to $0.80. What is the maximum number of burgers she can purchase?Alex has a budget of $100 a month for movie tickets and restaurant meals. A movie ticket will cost $10 and a restaurant meal costs $20. Which of the following combinations is part of Alex’s budget constraint? 4 movie tickets and 4 restaurant meals 2 movie tickets and 4 restaurant meals 2 movie tickets and 5 restaurant meals 2 movie tickets and 1 restaurant mealJessie has a budget of $50 and is attempting to draw her budget constraint for purchasing cookies and strawberries. At a maximum, she could consume 100 strawberries; she labels this point on the vertical axis of her budget constraint. If the slope of her budget constraint is -4, what is the price of a cookie?