each. You are choosing between a UofT hoodie and a Roots hoodie. They both cost $45 Suppose the price of the UofT hoodie increases by $5 and your value (expressed in dollars) from the Roots hoodie decreases by $5. When this happens, your Opportunity Cost of buying the UofT hoodie Willingness to pay for the UofT hoodie A. increases by $5; decreases by $5. B. decreases by $5; increases by $5. C. increases by $5; increases by $5. D. stays the same; decreases by $5. E. stays the same; increases by $5. and your

each. You are choosing between a UofT hoodie and a Roots hoodie. They both cost $45 Suppose the price of the UofT hoodie increases by $5 and your value (expressed in dollars) from the Roots hoodie decreases by $5. When this happens, your Opportunity Cost of buying the UofT hoodie Willingness to pay for the UofT hoodie A. increases by $5; decreases by $5. B. decreases by $5; increases by $5. C. increases by $5; increases by $5. D. stays the same; decreases by $5. E. stays the same; increases by $5. and your

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...

See similar textbooks

Similar questions

The figure shows Phillip's budget line when he has $40 a week to spend on protein bars and movies. Phillip can afford all combinations OA. both on and inside O B. inside, on, and outside OC. on but not inside OD. inside but not on the budget line. 10- 8- 6- 4- 2- Protein bars (number per week) Movies (number per week) Q Budget line Ś
Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get Disceunted prie to some stores than others. For Marked p price example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the skirt: anita's office Original pre Travel Time Each Way Price of a Skirt (Dollars per skirt) Store Local Department Store (Minutes) 15 102 Across Town 30 85 Neighboring City 60 76 Juanita makes $42 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $42 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of…
Your gym offers two classes at the same time:weightlifting and yoga. Both classes are includedin your membership and have space available.Your friend tells you he wants to work on hisstrength and take the weightlifting class, but youalways see him in yoga class. Which class giveshim more utility? How do you know this?
2. Determining opportunity cost Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 Discounted minutes away from where she works, and pay a marked-up Marked-up price price price of $102 for the suit: Juanita's office Original price Travel Time Each Way Price of a Suit (Minutes) (Dollars per suit) Store Local Department Store 15 102 Across Town 30 88 Neighboring City 60 63 Juanita makes $18 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $18 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing…
Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.
A date with Alex costs you $100 and gives you an additional 1000 units of utility. A date with Kelly costs you $200 and an additional 4,000 units of utility. Based only on the information you have, using the theory of rational choice, you most likely would: O be indifferent between the two dates O go on a date with Alex because the marginal utility per dollar is the greater of the two O go on a date with Kelly O go on a date with Alex
Matt has $14 to spend on fruit today at the grocery store. The only fruits he likes are apples and oranges. Both cost $2 per pound. Matt's preferences between these fruits are presented in the table below. How many apples and oranges will he buy if he were a utility maximizer? a b с Pounds of Apples 1 2 3 4 5 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. d Pounds of Oranges 1 2 3 4 5 Apples = 1 pound, Oranges = 2 pounds Apples = 2 pound, Oranges = 5 pounds Apples = 1 pound, Oranges = 1 pound Marginal Utility from Apples Apples = 3 pounds, Oranges = 3 pounds. 200 300 380 440 480 Marginal Utility from Oranges 100 200 250 280 300
1. Why might someone who is trying to decide whether to see a movie be more likely to focus on the $10 ticket price rather than the $20 she would fail to earn by not working during that time.
Your professor has $20 to spend on Sour Patch Kids and Cherry Coke Zero, the two supplies most useful in the production of economics papers. Cherry Coke Zero costs $1.50. Sour Patch Kids cost $2.50. The professor gets utility from the goods as follows: Quantity of Cherry Total Utility Marginal Utility of Marginal Utility per Coke from Cherry Dollar for Quantity of Sour Patch Total Marginal Marginal Utility Utility of Utility per from Sour Sour Dollar for Zero Cherry Coke Cherry Kids Patch Patch Sour Coke Zero Coke Kids Kids Patch Zero Zero Kids 0 0 X 0 0 X X 1 15 1 35 2 27 2 62.5 3 36 3 82.5 4 42 4 95 5 45 5 100 6 45 6 97.5 (Some columns were left empty. You may, but are not required to, fill them in if you will find it helpful to do so.) a) Write the professor's budget constraint. b) Sketch the professor's budget constraint. c) What is the opportunity cost of one Cherry Coke Zero? d) What is the opportunity cost of one unit of Sour Patch Kids? e) What is the professor's optimal…
learn-eu-central-1-prod-fleet01-xythos.content.blackboardcdn.com Imagine there is an outbreak of 'mad sheep' disease, which wipes out a considerable portion of the sheep population in Scotland. This results in a shortage of Haggis and an increase in its price. a) Show the effect of this price increase on Angus' budget line and optimal choice, and explain the forces underpinning this outcome. (Hint: Consider substitution and income effects). b) Assuming that Haggis' price continues to increase over the subsequent months, derive the demand curve for Haggis. c) Discuss the income and substitution effects within the context of this price increase assuming that Haggis is an inferior good. 2 26% 1
Q15.) Answer each question. Marie has a weekly budget of $24, which she likes to spend on magazines and pies. The price of a pie is $12 1.) If the price of a magazine is $4 each, the maximum number of magazines she could buy in a week is ___. 2.) If she buys 1 pie the number of magazines she can buy in a week is ____. 3.) What is her S opportunity cost of purchasing a pie? ___ 4.) If Marie's weekly budget is $24, which she likes to spend on magazines and pies, and If the price of a pie is $12 each, what is the maximum number of pies she could buy in a week? ___
The table shows the marginal benefit that Marcus derives by consuming different quantities of hotdog and soda. The price of a hotdog is $3, and the price of a soda is $1. Soda Marginal Benefits ($) Marginal Benefits ($) 10 ITT 8 6 4 2 1 0.6 What is the optimal combination of Soda and Hotdog for Marcus, if his weekly budget for hotdog and soda is $14? Quantity 2 3 4 5 6 O A. 2 sodas, and 4 hotdogs O B. 3 sodas, and 3 hotdogs O C. 5 sodas, and 3 hotdogs O D. 6 sodas, and 5 hotdogs Hotdog 18 12 6 3 1