Q: Theodore's budget line has changed from A to B. Which of the following explains the change in…
A: Budget line shows combinations of two goods that can be bought with given level of income
Q: alex has a budget of $100 a month for a movie tickets and restaurant meals. A movie ticket will cost…
A: Income per month(M) = $100 Two goods: Movie ticket(M) & Restaurant meal(R) Price of Movie ticket…
Q: Why does the optimal consumption bundle occur where the budget line is tangent to the indifference…
A: Answer: Introduction: A consumer maximizes his/her consumption where the slope of the budget line is…
Q: Kimiko is planning a party to celebrate her birthday. She has decided to serve sushi and yakıtori…
A: A Budget is defined as the estimation of the revenue and expenses for a specified period of time. It…
Q: Draw budget constraint if he has income of Rs. 1000 which he can spend on buying Pizzas and Pepsi…
A: Consumer's budget constraint :- It is the inequality cost less than or equal to his income.
Q: When a consumer earns a higher income, it rotates the budget line outward around the point where it…
A: A BL (budget line) demonstrates the two commodities whose combination a consumer can render to buy…
Q: Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…
A: Mary has two dinner options available: eating a home-cooked meal for $150 per meal, or at a…
Q: Drea budgets $50 for entertainment, which for her includes going to the movies or to basketball…
A: Given Drea Budget = 50 $ Price of movie ticket = 8 $ Price of basketball games = 15 $ Given…
Q: Question Earlier this year, 2021, the price of chicken meat rose unexpectedly reached to 250/ kilo…
A: Initial price of chicken meat = 170/kilo Final price of chicken meat = 250/kilo Absolute increase…
Q: An increase in a consumer's income causes her budget set to encompass […
A: When consumers income increases,more goods would be bought with the same amount of income.
Q: Theodore's budget line has changed from A to B. Which of the following explains the change in…
A: A budget line is faced by an individual and represents the different possible combinations of two…
Q: Jack buys apple at 4$, firts 5 amount of orange at 5$ , and any amount above 5 amoun is charged 10$.…
A: The budget set shows different combinations of the consumption bundles that are feasible for the…
Q: If BC2 is the relevant budget constraint, then the consumer will purchase bundle
A: Budget constraint represents all the combination of goods which the consumer can purchase with his…
Q: Explain the difference between indifference curve and iso-quant curve and similarly between budget…
A: Utility refers to the benefits that an individual derives from the consumption of goods and…
Q: Budget constraints provide a visual image the represents what a person can afford, given the price…
A: All individuals in the economy can purchase goods and services by the means of income that the earn…
Q: What is a budget line
A: Purchasing behavior is the decisions of consumers taken to purchase a particular type of product or…
Q: 1 Good 1 is on the horizontal axis and good 2 is on the vertical axis. Pi is the price of good 1 and…
A: Individuals have budget. Budget states the amount of goods and services that can be bought with a…
Q: A halving of the prices good A and good B has the same effect on the budget line as doubling the…
A: The graph that depicts all of the combinations that are possible to be brought with the given income…
Q: If a budget line is below the indifference curve. What does this mean? Are the points on the…
A: # given the prices of the two goods a budget line always represents the combination of goods which…
Q: for most individuals? a. needs are less than their wants b. needs exceed their wants c. need…
A: Need is something that people must fulfill for there survival. For example: to satiate hunger, an…
Q: (Figure and Table: The Budget Line) Use Figure and Table: The Budget Line. A(n) _____ in the price…
A: The budget line shows the maximum affordability of consumer based on the availability of income. the…
Q: Discuss Budget line
A: A budget refers to an estimate of revenues and expenses that are to be incurred in the future and…
Q: Originally the consumer faces the budget line p1x1 + p2x2 = m. Then the price of good 1 doubles, the…
A: Budget line shows all possible combination of two goods that consumer is able to consume when…
Q: A consumer’s budget line is kinked towards the origin (i.e., the kink is pointing towards the…
A: A budget line illustrates the different combinations of two goods that can be purchased with a given…
Q: The diagram shows Sam's budget line. The absolute value of the slope of Sam's budget line is equal…
A: Option B The slope of the budget line is equal to the ratio of the prices of two goods. Slope of…
Q: Budget constraints provide a visual image the represents what a person can afford, given the price…
A: Budget constraint shows the amount of two goods with given set of income that the consumer can…
Q: Earlier this year, 2021, the price of chicken meat rose unexpectedly reached to 250/ kilo at peak…
A: Answer 1 The law of demand refers to the inverse or negative relationship between the quantity…
Q: The slope of the budget constraint cannot change unless the budget amount changes. True or False?
A: Equation of the budget constraint is given by - M = PxX + PYY where M is the budget amount, X and Y…
Q: consumer's budget constraint describes: a. Goods outside the consumer's possible consumption basket…
A: A demand constrained framework is one where employment and output in the framework are what they are…
Q: What is budget set explain what can lead to change in budget set!
A: Budget refers to the amount of money income that is available with the consumer to be used for…
Q: The rate at which a consumer must give up y to get one more x is equal to * 2 points…
A: Option (a).
Q: The slope of the budget line is the
A: Budget line is the representation of all possible combinations of two goods which can be purchased…
Q: Suppose that income rises 50% while price of X rises 25% and price of Y rises 75%. How would the…
A: Budget line is also known as price line for consumer it shows different combinations of two goods…
Q: Mathemeticaly prove that slope of budget line is -P1/P2
A: Budget line P1 X1 + P2 X2 = M P1 and P2 is the price of good X and Y respectively While X1 and X2…
Q: Explain how a consumer budget and product price changes impact the budget line by drawing…
A: The budget line explains the combination of products to be selected till the last money of budget is…
Q: The diagram shows Sam's budget line. Sam's budget line shows
A: Budget line is a combination of prices of two commodities that a consumer can purchase with limited…
Q: The marginal rate of transformation of y for x represents * a)the rate at which the consumer…
A: The marginal rate of substitution refers to the rate at which a consumer gives up a good to get an…
Q: How do you derive that the slope of a budget line is -p1/p2? I'd like to see the mathematical…
A: Slope indicates that the direction of line and the steepness of the guideline.
Q: A student has a monthly budget of $120 to spend on either burritos, which cost $6 each, or sodas,…
A: Budget constraint refers to all possible points of consumption where the consumer utilizes its full…
Q: What is budget line in economics and explain why it is downward sloping draw a diagram also.
A: In economics, utility refers to the want satisfying power of a commodity. The two main concepts…
Q: Which of the following could explain the change in the budget line from A to B? Y 10B
A: The budget line refers to line that shows the combination of two goods and services which can be…
Q: Celine Dion, a hypothetical consumer has the budget constraints shown below. Which of Celine Dion's…
A: Budget line shifts when 1. Income of the consumer increases or decreases 2. Price of both the goods…
Q: Examples of form utility?
A: Utility is defined as the complete satisfaction a consumer derives from the usage of a product or…
Q: A consumer's budget is 137. A unit of good x costs 3 and a unit of good y costs 4. If the consumer…
A: Given: Consumer budget=137cost of good x=3cost of good y=4unit of good y purchased by consumer=3
Q: An increase in the price of good y would Select one: a. Shift the budget line b. budget line pivots…
A: Answer: b. budget line pivots from x-intercept to the left An indifference curve shows the…
Q: Quantity of D 10 8 2 02 4 Quantity of C Refer to the budget line shown in the diagram. The absolute…
A: Please find the answer below. SLOPE: The slope of a line is a measure of its steepness.
Q: A student has a monthly budget of $120 to spend on either burritos, which cost $6 each, or sodas,…
A: Budget line shows or exhibits the different combinations of two goods that a consumer can buy with…
Q: What unit do economists use to measure the satisfaction individuals get from consuming a good?…
A: The answer is - Utils
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Solved in 2 steps
- What is budget set explain what can lead to change in budget set!How is top-down budgeting different from bottom-up budgeting? Which of these methods is more widely accepted? What have been some of the attempts to reform bottom-up budgeting?Choices for a.) are -approximately $15 - approximately $6 -approximately $9
- What is budget variance?Kimiko is planning a party to celebrate her birthday. She has decided to serve sushi and yakitori meat skewers. Each serving of sushi is $8 and each yakitori skewer is $2. Kimiko has $240 to spend on the party. Please graph her budget line. Her friend, Barry, thinks there will not be enough food, so he gives Kimiko $80 more to spend on the party (she now has $320). How will this affect the budget line? a. There will be a parallel shift of the budget line away from the origin. b. There will be a parallel shift of the budget line towards the origin. c. There will be an outward shift of point A only. d. There will be an outward shift of point B only.What is a budget line