Chapter 2
1. A consumer prefers more to less of every good. Her income rises, and the price of one of the goods falls while other prices stay constant. These changes must have made her better of. TRUE 2. A decrease in income pivots the budget line around the bundle initially consumed. FALSE 3. If all prices are doubled and money income is left the same, the budget set does not change because relative prices don 't change. FALSE 4. If all prices double and income triples, then the budget line will become steeper. FALSE 5. If good 1 is measured on the horizontal axis and good 2 is measured on the vertical axis, and if the price of good 1 is p1 and the price of good 2 is p2; then the slope of the budget line is ��p2=p1.*…show more content…*

6. Edmund must pay $6 each for punk rock video casettes, V . If Edmund is paid $24 per sack for accepting garbage, G; and if his relatives send him an allowance of $168, then his budget line is described by the equation: (c) 6V �� 24G = 168. 7. Edmund must pay $6 each for punk rock video casettes, V . If Edmund is paid $24 per sack for accepting garbage, G; and if his relatives send him an allowance of $192, then his budget line is described by the equation: (c) 6V �� 24G = 192. 8. Eduardo spends his entire income on 12 sacks of acorns and 2 crates of butternuts. The price of acorns is 2 dollars per sack and his income is 34 dollars. He can just afford a commodity bundle with A sacks of acorns and B crates of butternuts which satisffies the budget equation: (b) 4A+ 10B = 68. 9. Harry thrives on two goods, paperback novels and bananas. The cost of paperback novels is 4 dollars each and the cost of bananas is 3 dollars per bunch.If Harry spent all of his income on bananas, he could afford 12 bunches of bananas per week. How many paperback novels could he buy if he spent all of his income on paperback novels?(c) 9 10. Heidi thrives on two goods: bananas and apples. The cost of bananas is 30 marks each and the cost of apples is 15 marks each. If her income is 210 marks, how many bananas can she buy if she spends all of her income on bananas? (b) 7 11. If she spends all of her income on lemons and tangerines, Isabella can just afford 30

6. Edmund must pay $6 each for punk rock video casettes, V . If Edmund is paid $24 per sack for accepting garbage, G; and if his relatives send him an allowance of $168, then his budget line is described by the equation: (c) 6V �� 24G = 168. 7. Edmund must pay $6 each for punk rock video casettes, V . If Edmund is paid $24 per sack for accepting garbage, G; and if his relatives send him an allowance of $192, then his budget line is described by the equation: (c) 6V �� 24G = 192. 8. Eduardo spends his entire income on 12 sacks of acorns and 2 crates of butternuts. The price of acorns is 2 dollars per sack and his income is 34 dollars. He can just afford a commodity bundle with A sacks of acorns and B crates of butternuts which satisffies the budget equation: (b) 4A+ 10B = 68. 9. Harry thrives on two goods, paperback novels and bananas. The cost of paperback novels is 4 dollars each and the cost of bananas is 3 dollars per bunch.If Harry spent all of his income on bananas, he could afford 12 bunches of bananas per week. How many paperback novels could he buy if he spent all of his income on paperback novels?(c) 9 10. Heidi thrives on two goods: bananas and apples. The cost of bananas is 30 marks each and the cost of apples is 15 marks each. If her income is 210 marks, how many bananas can she buy if she spends all of her income on bananas? (b) 7 11. If she spends all of her income on lemons and tangerines, Isabella can just afford 30

Related

- Satisfactory Essays
## Naked Economics Chapter 1 Summary

- 86 Words
- 1 Pages

2. The poorer you are, the worse your economic life has become over the past 30 years.

- 86 Words
- 1 Pages

Satisfactory Essays - Better Essays
## principles of microeconomics practice exam#3 with answer keys

- 2540 Words
- 11 Pages

Refer to Table 7-8. If Evan, Selena, Angie, and Kris sell the good, and the resulting producer surplus is $700, then the price per unit must have been

- 2540 Words
- 11 Pages

Better Essays - Satisfactory Essays
## Appmath Chapter 5

- 954 Words
- 4 Pages

Kent Christy is organizing a fundraiser for the pool he manages. He bought ice-cream cones ($.75) and ice-cream sandwiches ($1.00) to sell. His total bill was $225. (a) If he ordered twice the number of ice-cream cones than ice-creamsandwiches, how many of each did he buy? (b) What did he spend for ice-cream cones? (c) What did he spend for ice-cream sandwiches?

- 954 Words
- 4 Pages

Satisfactory Essays - Decent Essays
## Econ 214 Exam 1 Complete Solutions Correct Answers Key

- 1890 Words
- 8 Pages

Question 35 Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been chosen as the base year. In 2002, the basket’s cost was $76.00; in 2004, the basket’s cost was $79.50; and in 2006, the basket’s cost was $85.00. The value of

- 1890 Words
- 8 Pages

Decent Essays - Satisfactory Essays
## Managerial Accounting Essay

- 630 Words
- 3 Pages

Warren Company makes candy. During the most recent accounting period, Warren paid $3,000 for raw materials, $4,000 for labor, and $2,000 for overhead costs that were incurred to make candy. Warren started and completed 10,000 units of candy, of which 7,000 were sold. Based on this information, Warren would recognize which of the following amounts of expense on the income

- 630 Words
- 3 Pages

Satisfactory Essays - Good Essays
## Chapter 11

- 2246 Words
- 9 Pages

20. Which of the following statements is TRUE? Economists normally assume that the goal of the

- 2246 Words
- 9 Pages

Good Essays - Satisfactory Essays
## Accounting: Costs and Learning Objective

- 4489 Words
- 18 Pages

2. Refer to the above table to answer this question. Suppose that Mia has a budget of $7 and the price of a litre of soya milk is $1, what is the maximum quantity that Mia might purchase?

- 4489 Words
- 18 Pages

Satisfactory Essays - Satisfactory Essays
## Maths Exam

- 956 Words
- 4 Pages

c. At the time she had $237, the cost of a lesson rose to $19. How many lessons can she pay for with her remaining $237?

- 956 Words
- 4 Pages

Satisfactory Essays - Satisfactory Essays
## Eco/372 Week 1

- 454 Words
- 2 Pages

Scenario 3: The nation is currently experiencing a period of rising prices. Inflation is making consumer goods increasingly difficult to afford as wages have remained constant.

- 454 Words
- 2 Pages

Satisfactory Essays - Satisfactory Essays
## Acct Chap 13 Kimmel

- 1430 Words
- 6 Pages

In January, Reyes Tool & Dye requisitions raw materials for production as follows: Job 1 $960, Job 2 $1,630, Job 3 $720, and general factory use $680. During January, time tickets show that the factory labor of $6,100 was used as follows: Job 1 $1,570, Job 2 $1,940 Job 3 $1,670, and general factory use $920. Prepare the job cost sheets for each of the three jobs. (If answer is zero, please enter 0, do not leave any fields blank.) Job 1 Date 1/31 1/31 Direct Materials 960 0 Job 2 Date 1/31 1/31 Direct Materials 1630 0 Job 3 Date 1/31 1/31 Direct Materials 720 0 0 1670 Direct Labor 0 1,940 Direct Labor 0 1570 Direct Labor

- 1430 Words
- 6 Pages

Satisfactory Essays - Decent Essays
## EGT1 Task 2

- 932 Words
- 4 Pages

Explain the corresponding impact on total revenue for each of the three price ranges identified in part G.

- 932 Words
- 4 Pages

Decent Essays - Decent Essays
## Generate Expressions

- 1951 Words
- 8 Pages

1. If a coffee company purchases paper cups at a cost of x cents for a package of ten and lids at a cost of y cents per dozen, which of the following represents its material cost, in cents, of c cups of coffee?

- 1951 Words
- 8 Pages

Decent Essays - Decent Essays
## Math 117 Apc

- 730 Words
- 3 Pages

What price would you sell the tile sets at to realize this profit? Hint: Use the demand equation from part a.

- 730 Words
- 3 Pages

Decent Essays - Satisfactory Essays
## Bottled Water Case Study

- 444 Words
- 2 Pages

Write linear equations to represent the costs for each company based on the number of pallets purchased.

- 444 Words
- 2 Pages

Satisfactory Essays - Satisfactory Essays
## Task 1: Halloween Animal Ear Fabric

- 477 Words
- 2 Pages

5. I want to make 10 headbands / pair clips and the ingredients cost me $39/10=$3.9. So, it costs me $3.9 to make each clips/ headache and if I sell them for $6.5 each, I make 2.6 on each pair of clips or headbands

- 477 Words
- 2 Pages

Satisfactory Essays