If a household has an income of $50 and buys only milk at $3 each unit and honey at $6 each unit, what is the household’s budget equation? Explain your answer.

Q: A consumer has income of $3,000. Wine costs $3 per glass, and cheese costs $6. What is the slope of…

A: Budget line: M = Px . X + Py . Y Slope : (-) Price ofwine Price of cheese

Q: Birgitta spends 150 shillings per month on coffee and buns at the cafeteria. A cup of coffee costs…

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Q: In the diagram, Tanisha originally selects her consumption bundle at point A with 3 pounds of olives…

A: The theory of demand says that with an increase in price the demand for the commodity falls. Thus,…

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: Jason has the following utility function: U = F?C where F is food and C is clothing. Clothing is…

A: Given   Jason utility function U=F2C             .........(1) Where F is food and C is clothing…

Q: How does a rational consumer choose his optimal consumption bundle? Graphically show the…

A: The economics as a study is based upon the idea that the economies, and the societies around the…

Q: Suppose Cawlin has a budget of $90 that he spends on movies Q) and roller skating (Qal. The price of…

A: a budget constraint represents all the combinations of goods and services that a consumer may…

Q: Assume a household with a monthly income of $5,000. This household allocates its income to the…

A: a. The budget equation is 20F+150NF= 5000

Q: Jessie has a budget of $50 and is attempting to draw her budget constraint for purchasing cookies…

A: Price of goods can be calculated by using the following formula.

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: A consumer spends all his income (in equilibrium) to purchase 50 units of x and 20 units of y when…

A: Budget line(BL): - it is the graphical representation of different combinations of two goods that a…

Q: Using examples, does an increase in income affect a consumer’s budget line? Does it impact their…

A: Suppose, X is an individual consuming Grapes and pineapples. X’s income is 150. X gets utility by…

Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice, O, $1 each. Her income is…

A: Budget line is the price line shows the various combinations of two goods that can be bought with…

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

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Q: Graph: Consumer Choice lan buys only chocolate-chip cookies and cashew nut milk. In year 1, lan…

A: In first year. Income = $100 Cost of cashew nut milk = $2 per quart Chocolate-chip cookies cost = $4…

Q: Consider the following figure showing three budget lines corresponding to a change in income (with…

A: Income elasticity of demand: - Income elasticity of demand measures the responsiveness of change in…

Q: As a college student you work at a part-time job, but your parents also send you a monthly…

A: Budget constraint line shows the different possible combination of goods that can be purchased…

Q: What information is embodied in a budget line? What shifts occur in the budget line when money…

A: A budget line represents all the bundles i.e. combination of two goods which a consumer can buy with…

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: Amy has $12 to spend on coffee and soda. The price of coffee is $2 a cup, and soda is $1 a can. The…

A: A budget line is a downward-sloping straight line that contains all potential combinations of the…

Q: Ursula views one cup of frozen yogurt to be a perfect substitute for three pieces of chocolate chip…

A: An indifference curve shows various combinations of two goods that give the consumer equal utility…

Q: Draw the budget constraint for a person with income of $1,000 if the price of Pepsi is $5 and the…

A: Budget constraint depicts the combinations of two products or services which could be purchased by a…

Q: Originally the consumer faces the budget line p1x1 + p2x2 = m.What happens to the budget line if the…

A: "Budget is an estimate of earnings and expenses of a household, business or the government. "Budget…

Q: Explain the consumer equilibrium point by using Indifference Curve Approach and the Budget Line.…

A: The equilibrium of consumer is established when he derives maximum satisfaction. In case of…

Q: How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?

A: If prices and consumer’s income will be double then there is no effect in budget constraint and it…

Q: Given that Tebogo's income is P1800, price of food is P30 and price of entertainment is P40. Draw…

A: The Income of the Tebogo is P1800, it means that this is the maximum amount which can be used to…

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: If you know that Ahmed’s income is 40 dinars, the price of the commodity (x) is 10 dinars, and the…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice,O, $1 each. Her income is…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Kawther’s income is OMR12 a week. The price of small-sized pizza is OMR3, and the price of a fresh…

A: 1. The budget line equation is given below.

Q: 1.Originally the consumer faces the budget line p1x1 + p2x2 = m.If the price of good 1 doubles and…

A: Microeconomics studies the economic behavior of individual units such as a seller, a consumer, a…

Q: Using the following utility schedule, derive a demand curve for pizza. Assume income is $10, the…

A: 1. When the price f pizza is $1, then the maximum utility combination occurs at 3 units of beer and…

Q: Given that Rhumbi's budget line is 25=1/4 Cake +Tea and the price of tea is R10. What is Rhumbi's…

A: The budget line is the maximum amount of income which the consumer can spent on both the goods while…

Q: Suppose a consumer only purchases food and clothing, and food plotted along the horizontal axis of…

A: Indifference curve: It refers to that curve which shows the combination of two different goods…

Q: Given the data in the above table, if income is $16, and the price is $1 for a bottle of water and…

A: Total utility is the total satisfaction that a consumer derives when he consumes goods and services.…

Q: True or false.  A budget constraint, budget line or budget set is a graphical way to illustrate all…

A: It's vital to remember that the slope of the budget line equals the cost ratio of two commodities.…

Q: Suppose Cawlin has a budget of $90 that he spends on movies (Q) and roller skating (Qa. The price of…

A: The budget constraint of a consumer is the maximum amount of two goods which a consumer can buy…

Q: .A consumer that chooses to spend all of her income, and she dislikes most the two extreme points…

A: Since, the consumer dislikes the extreme points of consuming only one of the goods, so the…

Q: If the price of Apple increases and the price of Oranges decreases, how will it affects the budget…

A: The consumer equilibrium is that condition in which the consumer benefits the maximum from his/her…

Q: Suppose Gregg consumes chocolate candy bars and oranges. He is given four candy bars and three…

A: Income is the amount of money an individual have to spend the goods and services he/she wants. The…

Q: If the price of a cinema ticket is 20, the price of a concert ticket is 40 and the income is 120,…

A: Budget constraint shows the combination of two goods a person can afford given its income level and…

Q: Hira has Rs.1200 a week to spend on yogurt and mangoes. The price of yogurt is Rs.200, and mangoes…

A: The budget line, additionally referred to as the budget constraint, exhibits all the mixtures of two…

Q: Would you expect total utility to rise or fall with additional consumption of a good? Why?

A: Marginal utility is the additional satisfaction that is obtained from consuming one more unit of the…

Q: Eric likes both chocolate ice cream (x) and vanilla ice cream (y). He has the utility function U(x,…

A: