
Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Need help with number 2

Transcribed Image Text:Econ. 1 and 2 HW Assign. #1 Name and class daytime
You lose one point if you do not have your name above.
1. Draw the budget constraint for someone with $10 going into the store to buy only apples and
oranges. Oranges cost $2 each and apples cost $1 each. Be sure to label your axis, but you
only have to put numbers at the two endpoints. (This question is worth 1 point)
1o
2. Below is a table of production for a 3 person kingdom that makes televisions and radios. The
for the
numbers show each worker's individual productivity for each good. Fill in the blanks
column of radios lost per television gained. Then write a 1, 2, or 3, on the blank line next to
each worker to show the efficient order to transfer them from making radios to television.
(This question is worth 3 points.)
Televisions
Radios
Radios Lost Per TV gained
Albert
12
12
Barbara
6
Craig
3. If you drew a PPF for the society above, what would be the two endpoints. List the two
answers as ordered pairs, for example (7 radios, 9 TVs) and (4 radios and 15 TVs). You
not have to draw the PPF yet. (This question is worth 1 point.)
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Explain why individuals make Choices that are directly on the budget constraint, rather than inside the budget constraint DI outside it.
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Draw Maries budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of me budget constraint?
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I already have parts 1,2,3. I just need help with parts 4 and 5.
Robinson Crusoe lives in an island. There are onlytwo food sources in this island: coconut and berries. There is no money in the island but Robinsonuses his time to collect coconuts and berries. He sleeps 8 hours in a day. Collecting a coconut takes2 hours. Picking a pound of berries takes one hour.
1. Considering the food collection times as the prices in the island, write the budget line equationand draw Robinson’s budget line graphically. Specify the intercepts and the slope in the budgetline on the graph.Robinson falls from coconut tree and injures his leg. After the injury collecting coconut takes longer.He can only collect a coconut in 4 hours, but he can still pick berries at the same pace as before.
2. What happens to Robinson’s budget line? Show on the graph.
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3. What happens to Robinson’s budget line? Show on the graph.Two weeks after the…
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3. Darnell's $30 budget is spent entirely on muffins, which cost $3 each, or orange juice. His budget constraint shows endpoints at 10 muffins or 20 cartons of orange juice. How much does orange juice cost? (Sketch out the budget constraint to help you with this one, but I'm only looking for a verbal answer.)
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Bob goes to the supermarket to buy milk and cereal. He has $20 tospend. A consumption bundle consists of a quantity of milk, x (liters),and a quantity of cereal, y (grams). For all of the following questionsyou can assume that the consumption set is R2+. This means that milkand cereal can be consumed in any non-negative quantity.
(a) The price of milk at the supermarket is px = 4$/liter. The priceof cereal is 0.2cents/gram. Draw Bob's budget set. What is theslope of the budget line?
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Marie has a weekly budget of $24, which she likes to spend on magazines and pies. Calculate:
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c) Draw Marie’s budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint?
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NOTE: To answer this question simply work your answer in a piece of paper, take a photo of it and upload the file. Remember that this is a problem solving question, hence you must show your work!
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Economics
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Robinson Crusoe lives in an island. There are onlytwo food sources in this island: coconut and berries. There is no money in the island but Robinsonuses his time to collect coconuts and berries. He sleeps 8 hours in a day. Collecting a coconut takes2 hours. Picking a pound of berries takes one hour.
1. Considering the food collection times as the prices in the island, write the budget line equationand draw Robinson’s budget line graphically. Specify the intercepts and the slope in the budgetline on the graph.Robinson falls from coconut tree and injures his leg. After the injury collecting coconut takes longer.He can only collect a coconut in 4 hours, but he can still pick berries at the same pace as before.
2. What happens to Robinson’s budget line? Show on the graph.
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