If the consumer's income rises to $100 while the prices of pizza and cola are constant, then the budget line for pizza and cola would a. does not change b. rotate outward along the cola axis C. now intersect the horizontal axis at 10 pizzas and the vertical axis at 100 colas d. now intersect the horizontal axis at 12 pizzas and the vertical axis at 120 colas

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: Shannon consumes dresses and lemonade. The price of a dresses is $10 and the price of a lemonade is…

A: When talking about consumer behavior, an individual will be at equilibrium when: MUx/MUy=Px/Py

Q: Scott consumes only two goods, rice and soup. His preferences are complete, transitive, monotonic,…

A: The demand for normal and inferior goods changes due to change in the real income of the consumers.…

Q: A consumer has income of $3,000. Fresh Juice costs $3 per glass, and cheese costs $6 per pound.…

A: On horizontal axis we have taken cheese and on vertical axis we have taken juice.  • With an income…

Q: Lou's preferences over pizza (X) and other goods (y) are given by U(X,Y)=XY^2 with associated…

A: Utility:The utility is the power or capacity of the goods and services to satisfy human wants, it is…

Q: Given the following budget line PxX + Pyy = m And that the slope of the budget line depends only on…

A: Note: There are multiple subparts in the question. We shall solve the first three subparts for you.…

Q: Draw and label the following budget curves on a clearly labeled graph. A consumer uses their full…

A: A budget line is one which shows various combinations of two goods that a consumer can purchase by…

Q: loui's preferences over pizza (x) and other goods (y) are given by U(X,Y)=XY^2, with associated…

A: A utility function u (x, y) represents a consumer’s preferences. That is, a utility function…

Q: Consider a user maximizing their utility from two goods. If income were to double, and prices were…

A: A budget line shows various combinations of two goods a consumer can purchase by spending all income…

Q: In the diagram on the right the consumer's original budget line is L, and the consumer buys the…

A: In economics, the term substitution effect refers to a situation in which sales of a good will…

Q: For two goods that I consume and I like both of them, say hamburger and Ice Latte, if hamburger is…

A: Introduction: The budget line depicts all potential combinations of two commodities that a customer…

Q: Suppose the price of a donut is $2.50, the price of a cinnamon roll is $3.20, and the budget is $50.…

A: Budget line: A budget line depicts a consumer's maximum demand at a specified income level. If there…

Q: Shushma has a limited income to spend on orange and apple. Market price of orange (Po) is Rs.20 per…

A: The indifference curve shows the combination of the two goods that give equal satisfaction to the…

Q: Lou’s preferences over pizza (x) and other goods (y) are given by U(x, y) = 2xy2. His income is…

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

Q: loui's preferences over pizza (x) and other goods (y) are given by U(X,Y)=XY^2, with associated…

A: Utility:The utility is the power or ability of the goods and services that satisfy the consumers…

Q: Felipe consumes two goods, x and y. Their budget line at the beginning of the year had intercepts…

A: A budget line is the locus of different combinations of two goods that a consumer can purchase with…

Q: A consumer has income of $3,000. Wine costs $3 a glass, and cheese costs $6 a pound. Draw the…

A: Total income of the consumer = $3000 The cost of a glass = $3 The cost of cheese = $6

Q: Adam consumes no goods other than mandarins (M) and bananas (B). He considers 2 bananas to be…

A: Consumer theory: It studies the behavior of consumers based on their consumption preferences given…

Q: When the price of one'good increases and the price of the other good and income are held constant,…

A: Suppose there are two goods, i.e., X and Y Px is the price of X Py is the price of Y M is income.…

Q: Consider two goods, books and hamburgers. The slope of the consumer's budget constraint is measured…

A: Slope of budget constraint:- Slope of budget constraint  is the ratio of the prices of two goods. It…

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: 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: Anne likes pizza and chicken wings. Pizza costs $4 per slice, and chicken wings cost $10 for dozen.…

A: Budget line shows various combinations of 2 goods which can be used by a person given the prices of…

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: Question 1 You know the expenditure function is E = = 2/P=PyU and the price of y is 2. What is the…

A: Compensating variation refers to the amount of income for which the original income has to be…

Q: If good X plotted on the x-axis, and good Y plotted on the y-axis, an increase in the price of good…

A: Budget constraint shows the amount of the two goods that can be purchased given their prices and…

Q: Questions 5 (Demand). The following graph displays Adam's consumption point at a certain level of…

A: The consumers are the entities who tend to consume the goods, services, and other products produced…

Q: Bob has utility function U(x,y)=x+y over goods x and y. a) If P,-$30, Py-$10, draw the income…

A: Income consumption curve shows the relationship between consumption of goods and income .  If the…

Q: A consumer has initial income of $100 and faces prices of Px = $1 and Py = $5. Graph the budget…

A:

Q: A consumer consumes 2 goods, x and y. If the price of_good x trebles and the price of good y doubles…

A: Answer: Let us understand this with an example. Suppose the consumer initially has $100 and the…

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

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Refer to the information provided in Figure below to answer the question that follow. Molly's montly…

A: Ques 1) We have the following information : Molly's income = 75  Price of DVD = 3 Price of CD = 5

Q: Which budget constraint panel in Figure below shows the combined effects of an increase in the price…

A: Herez given budget constraints shows the quantity of oranges on y-axis and quantity of apples on…

Q: Mr. Haroon has limited income which he spends on goods X and Y, market price of X is Rs. 30 per unit…

A: Given, Price of good X = PX = Rs. 30 Price of good Y = PY = Rs. 40 Let assume the income of Mr…

Q: Consider two normal goods: pepsi and pizza. if the price of pepsi decreases then the consumption of…

A:

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: Leyla consumes goods X and Y. The price of good X is Px and the price of good Y is Py, Leyla’s…

A: Budget constraint refers to the different combinations of two goods that a consumer can consume with…

Q: Explain the meaning of a budget line? B.  Explain the effect of the following on the budget line if…

A: Budget line is the constraint which the consumer can spend on the consumption of the goods ie the…

Q: A consumer is choosing between magazines and books. His set of consumer optimums are shown on the…

A: We can show that 1)We seen that PCC is horizontal, that means that change in price of books doesn't…

Q: PYQY = M, where PX = $2, PY = $1 and M = $10 (M is income) a. What is the slope of the budget…

A: The ‘optimal choice’ of the goods of the consumers is dependent on the income of the consumers. The…

Q: Ersen likes to consume apples and bananas. Suppose Ersen's income doubles and the prices of apples…

A: The utility is the satisfaction that consumers gain by consuming goods and services. Consumers…

Q: Find the quantity of each good the consumer will purchase in the cases shown in the table below.…

A: Case A Budget = 7 $ Price of grapes = 1 $ Quantity purchased with 7 $ = 7 / 1 = 7 grapes Or Price of…