Consider the following graph, which shows the relationship between an individual's income and the number of times he or she eats out each month. QUANTITY (Dinners out per month) 20 18 16 14 12 10 2 0 0 1 O 2 3 5 6 7 8 INCOME (Thousands of dollars per month) 9 10 Darnell (?) Hint: When answering the following, be sure to specify the appropriate units. The blue point already shown on the graph shows the data for Eleanor. According to the graph, Eleanor's income is has Suppose Eleanor's friend Darnell has an income of $2,000 per month and has 4 dinners out per month. I and she

Consider the following graph, which shows the relationship between an individual's income and the number of times he or she eats out each month. QUANTITY (Dinners out per month) 20 18 16 14 12 10 2 0 0 1 O 2 3 5 6 7 8 INCOME (Thousands of dollars per month) 9 10 Darnell (?) Hint: When answering the following, be sure to specify the appropriate units. The blue point already shown on the graph shows the data for Eleanor. According to the graph, Eleanor's income is has Suppose Eleanor's friend Darnell has an income of $2,000 per month and has 4 dinners out per month. I and she

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter1: What Is Economics

Section1.3: What Do Economists Do?

Problem 5R

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Elaborate and explain all possible effects of change in income to the equilibrium of consumer.
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1. Gorgeousleny with an income of P150 would like to buy two goods. Let us say juice and bread. Price of juice is P12 and price of bread is P6. If gorgeousleny will buy the ist 5 juices she is entitled to a 50% off. Draw the graph. After a week gorgeousleny went back to the store and will still buy her two favorite goods with the same income of P150 and price of bread and juice is constant. but this time the promo of 50% off is applied after the ist 5 juices. Draw the graph. . a. ) Measure the qty. of bread on the vertical axis and the qty. of juice on the horizontal axis. Label both graph with its corresponding points, pt. A for bread and point B for juice. the combination of bread and juice label it as point C. b.) For both graph, What is the slope from point C to point B? ; What is the slope from from point A to point C?
Eren’s two main hobbies are taking vacations overseas (V) and eating expensive meals (M). His utility function is given as: U(V,M) = V^2MLast year, the average price of taking a vacation overseas was US$200 and the average price of an expensive meal is $50. However, due to supply problems in Onions, the average price of an expensive meal rose to $75. The average price of a vacation did not change. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should be given to Eren to offset his change un utility due to the price increase of an expensive meal. Calculate the compensative variation (CV).
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Assuming a chocolate bar costs $4 each and a bottle of wine $25. a) Graphically depict (and provide an appropriate title) the behavior of the following three individuals according to a model we have studied and then given information: Alex with an income $1000, Sandra with an income of $750, and Bo with an income of $1200. b) Can you indicate the level of actual consumption given the information in the problem? If yes, why? If no, why not?
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