Dr. Farida is planning for her requirement. Suppose she can consume her salary of Rs. 100,000 while she is in service or save her salary to consume it after retirement. When she saves her salary she will get 10% interest on it. Draw Dr. Farida’s budget constraint, her indifference curve and her optimum. If interest rate goes up to 20%, draw figures to show when she will save more and when she will save less.

Dr. Farida is planning for her requirement. Suppose she can consume her salary of Rs. 100,000 while she is in service or save her salary to consume it after retirement. When she saves her salary she will get 10% interest on it. Draw Dr. Farida’s budget constraint, her indifference curve and her optimum. If interest rate goes up to 20%, draw figures to show when she will save more and when she will save less.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 2SQ

See similar textbooks

Similar questions

iii. Dr. Abida is planning for her requirement. Suppose she can consume her salary of Rs. 200,000 while she is in service or save her salary to consume it after retirement. When she saves her salary, she will get 8% interest on it. Draw Dr. Abida’s budget constraint, her indifference curve and her optimum. If interest rate goes up to 15%, draw figures to show when she will save more and when she will save less.
1 Dr. Abida is planning for her requirement. Suppose she can consume her salary of Rs. 200,000 while she is in service or save her salary to consume it after retirement. When she saves her salary, she will get 8% interest on it. Draw Dr. Abida’s budget constraint, her indifference curve and her optimum. 2 If interest rate goes up to 15%, draw figures to show when she will save more and when she will save less.
Dr.Farida is planning for her requirements. Suppose she can consume her salary of Rs. 100,000 while she is in service or save her salary to consume it after retirement. When she saves her salary she will get 10% interest on it. Draw Dr. Farida's budget constraint, her indifference curve and her optimum. If interest rate goes upto 20%, draw figures to show when she will save more and when she will save less.
Use diminishing marginal utility theory to explain why people would prefer stable income to receive the same total income but with much more variation week to week.
Suppose Marcus eats nothing but burritos for dinner. He buys 30 burritos each month. During the last couple of weeks, Marcus noticed a decrease in the price of burritos. The price of burritos fell from $6.00 per burrito last month to $5.75 per burrito this month. Assume that Marcus has a fixed income of $180 that he can spend on burritos. How many burritos can Marcus afford to buy at the new price of $5.75?
Dr. Abida is planning for her requirement. Suppose she can consume her salary of Rs. 200,000 while she is in service or save her salary to consume it after retirement. When she saves her salary, she will get 8% interest on it. Draw Dr. Abida’s budget constraint, her indifference curve and her optimum.iv.If interest rate goes up to 15%, draw figures to show when she will save more and when she will save less.
Find Katie’s optimal amount of consumption and leisure.