5. Which of the following will have an inward parallel shift of the budget constraint? A. Increase in income. B. Increase in the price of one good. C. Decrease in the price of one good. D. Decrease in income.

Q: 7) The want satisfying power of a commodity is known as: A) Supply B) Consumption C) Utility D)…

A: The utility is defined as the satisfying power of an good. In simple words, utility refers to the…

Q: 1. Classify each pair of goods as substitutes, complements, or independent. - shoes and sandals  -…

A: Substitutes are goods that are used in place of the other. Complements are goods that are used…

Q: A consumer has $300 to spend on goods X and Y. The market prices of these two goods are Px = $15 and…

A: Market rate of substitution refers to the rate at which two goods can be exchanged in a market place…

Q: Suppose that with a budget of $180, Deborah spends $108 on sushi and $72 on bagels when sushi costs…

A: Since there are many question, only the first part would be answered. To get the answers to the rest…

Q: 3. A consumer is observed to display the following: MUy P, MU, P MU; and MU, are the marginal…

A: Since you have posted multiple questions, we will solve the first one for you. If you want any…

Q: . when the price of a good increases and the price of another good and income are held constant, the…

A: Budget lines shows the graphical representation of combination of total expenditure of two goods…

Q: Question 7: For each of the following price-income scenarios, sketch the con- sumer's budget lines…

A: Budget line: 1) BL1: 70=5q1+10q22) BL2: 70=10q1+10q23) BL3: 140 =10q1+10q2

Q: Explain how the budget constraint might change if income and prices of all goods increased in same…

A: Consumer income is the earnings that an individual has gain from their work or investment.

Q: What will happen to the slope of the budget line if the price of good X decreases to N$18

A: Given price of good  X = $35 Price of good Y = $ 25 Income =I = $1500

Q: 12. Wayne has $2,000 dollars to spend on Grey Cup football tickets (measured in numbers along the…

A: Answer -

Q: Suppose potatoes are a Giffen good. Then if the price of potatoes decreases, the quantity of…

A: Giffen goods are those goods for which price and quantity demanded varies directly. It means that…

Q: 4) Refer to Figure 6.6. Bill's budget constraint was originally AD. If his new budget constraint is…

A: Consumer demand theory is an important theory of microeconomics. Demand is the willingness and…

Q: 11. If two goods are complements, this means that a rise in the price of one commodity will induce

A: To find : What will rise in price of commodity will include.

Q: 4. Price and demand are positively correlated in case of A. O Normal goods B. O Comforts C. Giffen…

A: Usually demand is negatively sloped showing inverse relationship between price and quantity…

Q: 34. Refer to Figure#6. If the consumer was initially at point A in the figure, a movement from point…

A: Microeconomics studies the economic behavior of the individual units such as a firm, a market, a…

Q: . Explain utility and its connection to consumer behavior

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: 3- You have a budget of 5000 PKR, the biryani is for 250 PKR and coke is for 100 PKR. Draw the…

A: Budget line: - it is the graphical representation of different combinations of two goods that a…

Q: Question 3 (Budget Constraint). Vince consumes gas (x1) and food (x2). Suppose the price of gas is…

A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be…

Q: 19. Suppose Alphonso's town raises the price of bus tickets from $0.50 to $1 and the price of…

A: Given values in the Question are following -:…

Q: 35. Refer to Figure#6. If the consumer was initially at point A in the figure, a movement from point…

A: The substitution effect occurs when the quantity of one good increases while the quantity of another…

Q: 3(b)Discuss, using indifference curve analysis, why a decrease in a sales tax on all goods and…

A: A decrease in sales tax of all goods will lead to fall in income of consumers. A fall in income will…

Q: A consumer is in equilibrium at point A in the diagram below. The price of good X is $5.     a.…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: A consumer must divide $600 between the consumption of product X and product Y. The relevant market…

A: The Budget line is referred to as a constraint that depicts all the combinations of two goods that a…

Q: 3) For Nour doughnuts and muffins are perfect substitutes. Doughnuts are £4 a box and muffins are £3…

A: Dear student, You have asked multiple questions in a single post. I am answering question number 3…

Q: 5. Construct the budget line equation for the GL line. 18 R 10 10 15 Quantity of X Quansity of Y

A: The budget line LM passes through (0,10) and (15,0) and the budget line RS passes through (0,18) and…

Q: 4. The price of cheese rises from $6 to $10 per kilogram, while the price of wine remains $3 per…

A: A rise in price from $6 per kg to $10 per kg results in budget line declining from 500 to 300 on…

Q: Question No. 5| Hafidh's income is $200 a month. The price of watch is $25 a show, and the price of…

A: Given, Income = $200 Price of watch = $25 Price of jeans = $15

Q: Pizza 1. Refer to Figure# 1. Which point in the figure showing a consumer's budget constraint…

A: The above problem of budget constraint is solved as follows:

Q: 5) Explain the impact of consumers expecting the price of a good increasing in 2+ sentences. Provide…

A: The expectations of price in the market can lead to shifting both the demand as well as supply. If…

Q: B) The increase of Income when the ice-cream cone is a normal good will result to a movement from O…

A: Consider below two points: 1. Movement along the curve occurs due to the price of the commodity. 2.…

Q: 1. The consume less of the good with a relatively higher price and more of the good with a relativ…

A: Option B ie Substitution Effect When price of good rises, a consumer substitutes it for the cheaper…

Q: 7- Define the budget constraint and what does the slope of the budget constraint represent?

A: In Economics, budget is defined as a spending plan which is based upon the income and expenses of a…

Q: 40. What is a budget constraint? Select one: a. A limited amount of income available to consumers to…

A: Microeconomics studies the economic behavior of the individual unit such as a firm, a market, a…

Q: 2) Suppose you have $400 that you can spend on goods 1 & 2. If the price of good 1 is $40, while the…

A: The economics as a study focuses on the use of the resources which are available with each society.…

Q: Question 3 a. Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost…

A: a. (i) Andre income (I) = $1,000 Price of shoe (Px) = $15/shoe Price of beer (Py) = $25/beer Let the…

Q: 4. By definition, a budget constraint shows the consumption bundles that a consumer can afford.…

A: The budget constraint shows the different combinations of commodities that is afforded by an…

Q: Оиestion 4: In Figure below a budget constraint is shown. If PY (the price of good Y) is $6, what is…

A: Budget constraint is a representation of the bundles of goods and services that a consumer can buy…

Q: Explain and analyze in detail, based on consumer theory, how an individual responds to a change in…

A: Income and substitution effect: The components of the pricing effect are the income effect and…

Q: A consumer’s budget set for two goods (X and Y) is 600 ≥ 3X + 6Y.                a. Illustrate the…

A: A budget set is a collection of all conceivable combinations of two items that a consumer may…

Q: 6. An individual demand curve slopes downward to the right because of the

A: The law of demand establishes a negative correlation between the price and the quantity demanded of…

Q: 4. Suppose that a decrease in the price of X results in more of good Y sold. What are X and Y…

A: In a market, two good can be related to each other as they either substitute of each other or they…

Q: 9. The X-intercept of the budget constraint represents how much of good Y can be purchased if no…

A: The budget constraint is the summation of multiplication of price of good x to the quantity of good…

Q: 1. In drawing an individual's demand curve for a commodity, all but which one of the following are…

A: Note:- Since we can only answer one question at a time and the exact question is not specified,…