Please explain -why budget constraint is W1=(Ct1+Cn1)*pn1.and how you derive (step by step) inter temporal budget constraint from the period 1 and 2 constraints.
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ASAP
Please explain -why budget constraint is W1=(Ct1+Cn1)*pn1.and how you derive (step by step) inter temporal budget constraint from the period 1 and 2 constraints.
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- If BC2 is the relevant budget constraint, then which of the following bundle(s) is(are) affordable? A. A. B. B. C. C. D. All of the above. E. None of the above.If BC2 is the relevant budget constraint, then the consumer will purchase bundle A. B. B. C. C. D. D. E. E. F.How do you derive that the slope of a budget line is -p1/p2? I'd like to see the mathematical process. Thanks!
- Rank the three economic variables from most important to least important.Provide one relevant reason to justify your selection for each of the threepositions. (i.e. a reason why each variable is placed at position 1, 2 and 3.) Rank Variable Justifications 1 2 3Suppose that the quantity of tacos consumed per month is on the x-axis and the quantity of pizzas consumed per month is on the y-axis, a decrease in the price of pizza holding the price of tacos constant will A. cause the budget line to shift inward toward the origin in a parallel fashion. B. cause the y-intercept to remain the same, but the -intercept will move away the origin. C. cause the budget line to shift outward from the origin in a parallel fashion. D. cause the x-intercept to remain the same, but the y-intercept will move away from the originwhy is there no inclusion of the parameter z in the solutions and the budget constraint?
- Explain very much in detail, using graphs you draw on your own, but also proper English reasoning and math, why the optimum consumption point is defined by the tangent to the indifference curve having the same slope as the budget constraint. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Consider an individual who receives utility from consumption, c, and leisure, l. The individual has L time to allocate to work, n, and leisure. The individual’s consumption is a function of how much he works. In particular, c = root n. The individual’s maximization problem is max U =ln(c)+θl subject to c = √n n+l=L where θ > 0. Solve the maximization problem. Hint: Substitute both constraints into the objective function.q7- When leisure is a normal good, the income effect from an increase in wages is manifest in a(n): Select one: a. desire to consume less leisure b. a change in preferences c. desire to consume more leisure d. a shift inwards of the budget constraint
- Explain the relation of each and every box with the next box in separate elaborative points.Suppose that the price of commodity Y is $ 20 per unit while the price of commodity X is $ 15 per unit and suppose that an individual’s money income is $ 100 per period and is all spent on X & Y. Draw the budget constraint line for this consumer at the initial point. 2. If the price of X decreases to $10, incorporate BL2 showing change in the Budget line.Suppose that the price of commodity Y is $2 per unit while the price of commodity X is $4 per unit and suppose that an individual’s money income is $100 per time period and is all spent on X and Y. Draw the budget constraint line for this consumer at the initial point. 2.If the price of Y decreases to $3, incorporate BL2 showing change in the Budget line.