Budget Constraint) Put meat on horizontal and potatoes on vertical axis.1. (Day 1) Suppose your income is $1000, prices of meat and potatoes are $10 and $20, respectively. Find the budget constraint equation and draw the budget line. Explain what the two intercepts mean. 2. (Day 2) Now meat has become cheaper. It costs $5. Your income and the price of potatoes did not change. Answer the same questions given in 1.   3. (Day 3) The next day, in addition to the price drop on Day 2, your income also dropped from $1000 to $500. Answer the same questions given in 1. 4. Compare Day 1 and Day 3. Is it possible to determine when you are better off? If yes, when are you better off? Explain

Q: Which one of the following statements is incorrect?             Each point on a budget line stands…

A: The line that depicts two commodities' possible combinations that could in turn be bought with the…

Q: 2- The following graph shows three indifference curves and the accompanying budget constraints for…

A: On a budget constraint diagram, an indifference curve is created to show the tradeoffs between two…

Q: Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVS)…

A: The budget line, also known as the budget constraint, displays all possible combinations of two…

Q: Regard these commodities as providing equal satisfaction value             Buy these commodities in…

A: The literal meaning of utility is satisfaction. So utility means the satisfaction derived by a…

Q: QUESTION 11 Which of the following pictures represents the effect of an increase in available hours…

A: Leisure time is when you are not working and may relax and do things that you like.

Q: A consumer consumes 2 goods, x and y. If the price of good x trebles and the price of good y doubles…

A: Situation 1 Let the initial price of good x be Px and good y be Py and income be M. The slope of…

Q: Express the equation of the budget line 4x + 5y - 300 = 0 in the: (i) intercept form and (ii) slope…

A:

Q: Using graph, explain when consumer maximize his utility? - Draw the graph Explanation

A: The complete enjoyment derived from consuming an item or service is referred to as utility in…

Q: Assignment Score: 85.3% Lx Give Up? O Hint Resume Question Suppose that research finds a link…

A: Free trade refers to the policy of the government which does not have imposed any restrictions on…

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: Question 2     The rule for rational budget allocation by the consumer is that the marginal utility…

A: Answer in Step 2

Q: QUESTION 7 A consumer only cares for the total number of books she reads. Books can be bought either…

A: Since, the consumer only cares about the total number of books read and not the source of the book,…

Q: 37. The consumer is in equilibrium at a point where the budget line

A: Consumer equilibrium is the point where consumer achieves maximum utility.

Q: Question1: a-Using an example with graph, explain when consumer is in equilibrium? b- Draw the…

A: Using an example with graph, explain when consumer is in equilibrium? Answer: Consumer equilibrium…

Q: 8. If cookies are a normal good and incomes increase, we would expect: Select one:

A: In a market, consumers enter to purchase normal products, inferior products, and so on. The category…

Q: consumer has RM300 to spend on goods X and Y. The market prices of these two goods are Px = RM=15…

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

Q: Explain why convex preferences means that “averages are preferred to extremes.

A: The indifference curve shows various combinations of two goods that give same level of utility to…

Q: Exercise 3 Identify whether the curve will shift to the right or to the left. Write R in the blank…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: 1. Compute the slope between points B and D. 2. Interpret/Explain descriptively the slope of the…

A: Below is the given values: The monthly budget = Php 600 1. Slope between points B and D =- Change in…

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: 1. Refer to graph (multiple choice) graph represents Cara's budget constraint and preferences A.…

A: In economics, the indifference curve illustrates the combinations of two goods that will give the…

Q: - Demand theory: A. From the indifference curve/budget constraint diagram, derive the individual's…

A: Demand Theory refers to an economic principle regarding to the relationship between consumer demand…

Q: 5. Suppose that by some miracle the number of hours in the day increased from 24 to 30 hours (with…

A:

Q: 1. A consumer consumes two kinds of goods, namely X and Y. The total satisfaction (TU) obtained in…

A: Hello, since there are multiple questions posted, we will answer first question. If you want any…

Q: Question 28     The marginal rate of substitution measures the:             extra utility that a…

A: Marginal rate of substitution : The Marginal Rate of substitution can be defined as the rate at…

Q: 11)Which of the following describes what happens to a consumer's budget line if that consumer's…

A: Budget line: A budget line is the graphical representation of all the possible combinations of two…

Q: Consider a consumer who must allocate their available income between the consumption of two goods,…

A: Marginal utility refers to the additional utility derived from the consumption of one more unit of…

Q: 10.1. Name and define the given graph. 10.2. Are the points of intersection, correct? Substantiate…

A: Consumer behavior studies the effect of different policies in detail. The preferences of consumption…

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

A: Answer- "Thank you for submitting the question. But we are authorized to solve one question at a…

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: Question 1 Suppose that bushfires in North-West Victoria destroys many of the citrus farms. As a…

A: Hi! thanks for the question but as per the guidelines we can answer only one question at one time.…

Q: ssume that a consumer has two goods to consume: medical care services (M) and all other goods (X).…

A: Budget line shows the two goods all possible combination which a consumer can buy with given level…

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

A: The market rate of substitution can be determined by using the below formula: MRS=PxPyPx=Price of…

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

A: Each consumer has a definite income from which he/she can spend on multiple goods. If the consumer…

Q: 2. Income and substitution effects Manuel is an accountant who enjoys apples and pears. Suppose that…

A: An alteration in price of a given product creates two effects : substitution and income effects on…

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: Problem 1 View Help Mario consumes only cheese and crackers. a. Could cheese and crackers both be…

A: 1. When a person's income rises, their consumption of an inferior good decreases. In spite of having…

Q: The diamond-water paradox arises because: the marginal utility of certain products…

A: The diamond-water paradox is based around the observation that despite water being a commodity…

Q: As described in Exercise 8.1, Lucy wants carpets and paintings for here office. Her company has…

A: Answer to the question is as follows :

Q: bination of goods lying outside of the budget line:             implies that the consumer is not…

A: A budget line shows all the possible combinations of two goods that a consumer can buy with the…

Q: 1. How does a consumer’s optimal choice of goods change if all prices and the consumer’s income…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

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

A: Budget constraint equation: Income = Price of good 1 x Quantity of good 1 + Price of good 2 x…