A sakai.plu.eduNetflixYouTubeDashboardQuick LinksIn the diagram, Tanisha originally selects her consumption bundle at point A with3 pounds of olives and 4 pounds of pickles a year. Then the price of pickles risesand the price of olives falls so that her budget line rotates but it still goes through230omi...26027028031032033Cpoint a. Tanisha's consumption of pickles36C37038Dem...zet S...old ..2246.8.1012Olives (pounds per year)OA. definitely will rise.OB. definitely will fall.OC. definitely will stay the same.OD. could rise, fall, or stay the same.F2F3000 F4F5F7F8F94)F10FII@#3244%&*235679.WEYPickles (pounds per year)

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

In the diagram, Tanisha originally selects her consumption bundle at point A with 3 pounds of olives and 4 pounds of pickles a year. Then the price of pickles rises and the price of olives falls so that her budget line rotates but it still goes through point a. Tanisha's consumption of pickles

In the diagram, Tanisha originally selects her consumption bundle at point A with 3 pounds of olives and 4 pounds of pickles a year. Then the price of pickles rises and the price of olives falls so that her budget line rotates but it still goes through point a. Tanisha's consumption of pickles

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 4SCQ: As a college student you work at a part-time job, but your parents also send you a monthly...

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As a college student you work at a part-time job, but your parents also send you a monthly allowance. Suppose one month your parents forgot to send the check. Show graphically how your budget constraint is affected. Assuming you only buy normal goods, what would happen to your purchases of goods?
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please urgent EXERCISE 2 Ravi has £21 to spend on pastries and biscuits. If he spends all the money on pastries, he can afford 15 pastries. The slope of Ravi’s budget line (assuming his pastries consumption is measured on the horizontal axis and his biscuits consumption is measured on the vertical axis) is -3.5 (3.5 in absolute terms). a) Calculate the price of a pastry and the price of a biscuit. Write down Ravi’s budget equation and draw the corresponding budget line. Mark the consumption bundle mentioned above. In your graph, clearly label the axes, the budget line, and calculate the coordinates of the points of intersection of the budget line with each axis. Interpret each of those points. b) Discuss how Ravi’s budget set would change if his budget doubles. Show the relevant changes graphically. How could the price of a pastry increase so that Ravi could still afford to buy 15 pastries? c) Discuss how Ravi’s budget constraint would change if the government imposed a tax of £0.50…
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