A recent newspaper circular advertised the following special on tires: “Buy three, get the fourth tire for free—limit one free tire per customer.” If a consumer has $360 to spend on tires and other goods and each tire usually sells for $40, how does this deal impact the consumer’s opportunity set?

A recent newspaper circular advertised the following special on tires: “Buy three, get the fourth tire for free—limit one free tire per customer.” If a consumer has $360 to spend on tires and other goods and each tire usually sells for $40, how does this deal impact the consumer’s opportunity set?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter3: Your Role As A Consumer

Section: Chapter Questions

Problem 20AA

See similar textbooks

Similar questions

A recent newspaper circular advertised the following special on tires: “Buy three, get the fourth tire for free—limit one free tire per customer.” If a consumer has $360 to spend on tires and other goods and each tire usually sells for $40, how does this deal impact the consumer’s opportunity set? show graphically the buy three get the fourth free
Jim can produce 60 units of Jell-O or 12 beets in a day. Dwight can produce 75 units of Jell-O or 25 beets in a day. Based on the above information, Jim’s opportunity cost of producing one unit of Jell-O is how many beets?
Charles is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Because his pool sessions are helping him swim more quickly, Charles plans to reduce by 1 hour per week the time he spends training on the bike and increase by 1 hour the time he spends in the swimming pool; however, his wife says that he should stop doing any biking and running and spend all 20 hours per week in the pool. Which basic principle of individual choice does Charles's plan illustrate that his wife's advice does not? Resources are scarce. All costs are opportunity costs. Many decisions are made on the margin. People usually exploit opportunities to make themselves better off.
Which of the following choices correctly illustrates how changes in opportunity costs affect supply? Choice 1 of 4:A farmer produces corn and wheat. The price of wheat rises; so he shifts his resources towards wheat and the supply of wheat rises.Choice 2 of 4:Milk and cereal are complementary goods; so when the price of cereal falls, the quantity supplied of milk rises.Choice 3 of 4:A fisherman fishes for lobsters and oysters. The price of lobsters rises; so he decides to spend more of his time fishing for oysters because he can make the same amount of money with fewer lobsters.Choice 4 of 4:A textbook for economics becomes cheaper; so more students opt to buy that particular textbook.
Marie has a weekly budget of $24, which she likes to spend on magazines and pies. What is Marie’s opportunity cost of purchasing a pie?
How does the slope of a budget line illustrate opportunity costs and trade-offs? How does a budget line illustrate scarcity and the effect of limited incomes?
Draw a production possibilities curve for food and clothing. If you are operating on the curve, what is the opportunity cost of producing more clothing? If you are on the curve, is it possible to increase production of one good without decreasing the production of the other?
The production possibilities curve illustrates the basic principle that: Question 70 options: an economy automatically seeks that level of output that employs all of its resources any production point below the curve reflects high opportunity cost the production of more of any one item will in time require smaller and smaller sacrifices of other items if all the resources of an economy are fully used, more of one item could be produced only if less of another item is produced any production point above the curve reflects low opportunity cost
Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you will pay $15,000 each year for tuition, $3,000 each year for textbooks, and $8,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $15,000 per year.Assume that if you decided not to go to college, your parents would not let you live at home.What is your opportunity cost for four years of college? $____
Which of the following is illustrated by a production possibilities curve that is "bowed out" or concave to the origin? options: a trade-off in which the opportunity cost of a good decreases with the level of its production a trade-off in which the opportunity cost of a good increase with the level of its production a trade-off in which the opportunity cost of a good is constant at all levels of production the fallacy of composition
Ming is presented with four meal choices, of which she gets to choose one. Her order of preference is sushi, pizza, schnitzel, and curry. Assuming Ming chooses the sushi, what is the opportunity cost of her decision?
How would the following events be shown using a production possibilities curve for shelter and food? (draw the production possibilities curve for each) The economy is experiencing a 10% unemployment rate. Economic growth is increasing by more than 5 percent per year. Society decides it wants less shelter and more food. Society decides it wants less food and more shelter.