Give typing answer with explanation and conclusion For the following assume that the world has only two goods: apples (y) and bananas (x). Apples cost $5 and bananas $10. Cristiano has $100, what is the equation of his budget constraint?
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- Marie has a weekly budget of $24, which she likes to spend on magazines and pies. Calculate: a) If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week? b) If the price of a pie is $12, what is the maximum number of pies she could buy in a week? 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? d) What is Marie’s opportunity cost of purchasing a pie? 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!Describe and graph your own example of a budget constraint using two goods (don’t forget to label your axes). In your example, make sure to state what the budget is, the price of the two goods, what the slope of the budget constraint equals (make sure to include the correct sign), and interpret what the slope represents.Assume you have a two-good model: Beverages are on the X axis and Food on the Y axis. You have a $400 budget. The price of beverage is $10, and the price of food is $20. a. Graphically illustrate the budget line correctly. b. Now assume the price of food decreases to $10 ceteris paribus. Graphically note the change on the same graph. PLEASE SOLVE THIS QUESTION WITH PROPER AND UNDERSTANDABLE GRAPH
- Vijaya spends Rs. 150 per month on coffee and buns at the cafeteria. A cup of coffee costs Rs. 15 and a bun costs Rs. 10. a) Write the equation for Vijaya’s cafeteria budget constraint. b) Assume that Vijaya never drinks coffee without eating one bun, and never eats buns without drinking coffee. How much of each will she consume? c) What do we call goods that are always consumed in the same proportion?Suppose you have $100 to spend on Skittles and M&Ms. The price of Skittles is $5.00 and the price of M&Msis $1.00.(a) Write the budget constraint and draw the budget constraint on a graph that has M&Ms on the verticalaxis. (b) Assuming you spend all of your money on skittles and M&Ms. If you bought 10 M&Ms how manySkittles did you purchase? (c) Suppose the price of skittles increases from $5.00 to $6.00. Rewrite the budget constrain and draw thenew budget line, including and indicating intercepts and the slopes. (d) Suppose the price of Skittles drops from $5.00 to $1.00. You are limited to only a maximum of 75skittles. Draw this new budget constraint on the same graph from your answers in part (a) and (c).Suppose Alphonso’s town raises the price of bus tickets from $0.50 to $1 and the price of burgers rises from $2 to $4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso’s weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain
- As an economics student your budget for meals at the university is Rs 12,000 and you have two options during the course of you studies: Eating at the university cafeteria for Rs 40 per meal Eating at the dining hall for Rs 10 per meal. a. Draw the budget constraint showing the trade-off between cafeteria and dinning hall meals, with cafeteria meals on x-axis and dining hall meals on y-axis. Assume you spend equal amounts on both goods, draw an indifference curve showing the optimum choice. Label the optimum as point A.Max chooses to purchase movie tickets and restaurant meals every week with his $100. The budget constraint for Max shows _____________ that is __________ and his _________ between movie and restaurant meal. Group of answer choices; a)expenditure; he prefers; trade-off b)consumption bundles; not affordable; trade-off c)consumption bundles; affordable; trade-off d)consumption bundles; affordable; best choiceUse this information to answer the following 4 questions: Marie has a weekly budget of $24, which she likes to spend on magazines and pies. If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week?If the price of a pie is $12, what is the maximum number of pies she could buy in a week?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?What is Marie’s opportunity cost of purchasing a pie?
- As an economics student your budget for meals at the university is Rs 12,000 and you have two options during the course of you studies: (i) Eating at the university cafeteria for Rs 40 per meal(ii) Eating at the dining hall for Rs 10 per meal. A) Draw the budget constraint showing the trade-off between cafeteria and dinning hall meals, with cafeteria meals on x-axis and dining hall meals on y-axis. Assume you spend equal amounts on both goods, draw an indifference curve showing the optimum choice. Label the optimum as point A. (2 Mark)Suppose Albert's town raises the price of bus tickets from $.50 to $1 and the price of burgers rises from $2 to $4. why is the opportunity cost of bus tickets unchanged? Suppose Albert's weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain.Use the information in the table below to answer the following questions concerning a consumer’s choice between food and clothing. Clothing MUc MUc/Pc Food MUf MUf/Pf 1 60 6 1 115 5.75 2 55 2 105 3 51 3 98 4 48 4 94 5 47 5 92 6 46 6 90 Fill in the blanks that remain in the table. Let I = $130, Pf = $20, and Pc = $10. Does the market basket C = 1 and F = 6 staisfy the budget constraint? Could this be the utility maximizing market basket? If not, in which direction would the consumer like to reallocate his or her purchases (i.e. more food or more clothing)? Given I = $130, Pf = $20, and Pc = $10, and using the information in the table, what is the consumer’s utility maximizing market basket, subject to his budget constraint?
