19. Suppose Alphonso's town raises the price of bus tickets from $0.50 to $1 and the price of burgers rises from $2 to $4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso's weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain.
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- Explain why individuals make Choices that are directly on the budget constraint, rather than inside the budget constraint DI outside it.Why does a change in income cause a parallel shift in the budget constraint?Would a research study on the effects of soft drink consumption on childrens cognitive development he a positive or normative statement?
- Draw Maries budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of me budget constraint?Suppose Albert's town raises the price of bus tickets from $.50 to $1 and the price of burgers rises from $2 to $4. why is the opportunity cost of bus tickets unchanged? Suppose Albert's weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain.Suppose Alphonso’s town raised the price of bus tickets to $1 per trip (while the price of burgers stayed at $2 andhis budget remained $10 per week.) Draw Alphonso’s new budget constraint. What happens to the opportunity costof bus tickets?
- 1. Suppose you earn $1500 per week and you consume only two types of goods per week- sandwiches and orange juice, which you purchase at a mini mart. Each sandwich cost $150 and an orange juice is $75 per cup. a) Construct a table showing the alternative combinations of the two products that are available. b)Plot the data in your table on a budget line. What is the slope of the budget line? What is the opportunity cost of one more cup of orange juice? And what is opportunity cost of one more sandwich? Do these opportunity cost rise, fall or remain constant as you purchase an additional unit of the product? c)Suppose the price of a cup of orange juice increased to $150. Construct a new table showing alternative combinations of sandwiches and orange juice. Construct the new budget line.Suppose Alphonso’s town raises the price of bus tickets from $0.50 to $1 and the price of burgers rises from $2 to $4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso’s weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain3. Darnell's $30 budget is spent entirely on muffins, which cost $3 each, or orange juice. His budget constraint shows endpoints at 10 muffins or 20 cartons of orange juice. How much does orange juice cost? (Sketch out the budget constraint to help you with this one, but I'm only looking for a verbal answer.)
- 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!For lunch, Misha eats only salads or fruit & yogurt smoothies. Her weekly food budget is $48. Each salad costs $8 and each smoothie costs $3.a. Draw Misha’s budget constraint.b. What is the opportunity cost of purchasing one more smoothie? What is the opportunity cost of purchasing one more salad?c. Describe intuitively how Misha should make the optimal consumption decision.d. Suppose that Misha income falls from $48 to $24. Show what happens to the budget constraint. Is it possible that Misha will consume more salad as a result of this?I already have parts 1,2,3. I just need help with parts 4 and 5. Robinson Crusoe lives in an island. There are onlytwo food sources in this island: coconut and berries. There is no money in the island but Robinsonuses his time to collect coconuts and berries. He sleeps 8 hours in a day. Collecting a coconut takes2 hours. Picking a pound of berries takes one hour. 1. Considering the food collection times as the prices in the island, write the budget line equationand draw Robinson’s budget line graphically. Specify the intercepts and the slope in the budgetline on the graph.Robinson falls from coconut tree and injures his leg. After the injury collecting coconut takes longer.He can only collect a coconut in 4 hours, but he can still pick berries at the same pace as before. 2. What happens to Robinson’s budget line? Show on the graph. Robinson’s injury makes him more sleepy. Now he sleeps 12 hours in a day. 3. What happens to Robinson’s budget line? Show on the graph.Two weeks after the…