NOTE: PLEASE ANSWER ALL THE ITEMS THANK YOU!! ASAP Refer to the information provided in Figure 6.2 below to answer the questions that follow.Number of beersper monthLeo's monthly budget constraint40 AE40Number of gardenburgers per monthQUESTION #15: Refer to Figure 6.2. The slope of budget constraint AC isA) -1.B)-2.C) -5.D) indeterminate from this information because prices are not given.QUESTION # 16: Refer to Figure 6.2. Assume Sir Leo's budget constraint AC. He will not spend hisentire incomeat pointA) AB) BC) DD) EQUESTION #17: Refer to Figure 6.2. Assume Sir Leo's budget is AC. Given his current monthly incomehe cannotpurchase the quantities of the two goods at point_A) AB) BC) DD) EQUESTION #18: Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of onegardenburger isA) 1/4 of a beer.B) a beer.C) 2 beers.D) changing as Sir Leo moves down his budget constraint.

"Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Number of beers er month 40 Leo's monthly budget constraint A A) A B) B C) D D) E E 8 D 0 40 Number of gardenburgers per month QUESTION #15: Refer to Figure 6.2. The slope of budget constraint AC is A) -1. B)-2. C) -5. D) indeterminate from this information because prices are not given. QUESTION # 16: Refer to Figure 6.2. Assume Sir Leo's budget constraint is AC. He will not spend hisentire income at point A) A B) B C) D D) E QUESTION #17: Refer to Figure 6.2. Assume Sir Leo's budget is AC. Given his current monthly incomehe cannot purchase the quantities of the two goods at point, QUESTION #18: Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of onegardenburger is A) 1/4 of a beer.

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Number of beers er month 40 Leo's monthly budget constraint A A) A B) B C) D D) E E 8 D 0 40 Number of gardenburgers per month QUESTION #15: Refer to Figure 6.2. The slope of budget constraint AC is A) -1. B)-2. C) -5. D) indeterminate from this information because prices are not given. QUESTION # 16: Refer to Figure 6.2. Assume Sir Leo's budget constraint is AC. He will not spend hisentire income at point A) A B) B C) D D) E QUESTION #17: Refer to Figure 6.2. Assume Sir Leo's budget is AC. Given his current monthly incomehe cannot purchase the quantities of the two goods at point, QUESTION #18: Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of onegardenburger is A) 1/4 of a beer.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 1PA

See similar textbooks

Similar questions

Draw Maries budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of me budget constraint?
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?
Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utilityâ€”maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.
Why does a change in income cause a parallel shift in the budget constraint?
Mega Partner is selling two products Marker(m) and Eraser(e) and their budget is given with thefollowing equation: 15Qe+ 30Qm= 3000. Now answer the following questions. I. Draw the budget line for Mega PartnerII. What would be the highest amount spend on Marker with the existing budgetIII. If Total budget increases to 4500 what would be the new budget line (use diagram)IV. If Price of the Marker becomes 15, how this changes the existing budget line keeping allthe values remain same.
Centa spends $56 a month at allthemovies.com on film-noir (FN) and sci‑fi (SF) movies, which typically cost $14 each. The first graph shows her budget constraint and her optimal consumption at point A. This month, SF movies are on sale for $7. On the first graph, draw the new budget constraint by moving one or both endpoints of the original budget constraint. Points B, C, D, and E indicate possible consumption bundles. Assume that FN movies are still $14 each. Budget Constraint and Optimal ConsumptionQuantity of FN moviesQuantity of SF movies012345678910012345678910BCBCDEA On the second graph, draw Centa's individual demand curve for SF movies from a price of $14 to a price of $7. Do not continue the line past these points to the axes. Individual Demand for SF MoviesPrice of SF moviesQuantity of SF movies01234567891001234567891011121314demand As with Centa's demand for SF movies, the law of demand states that price and quantity demanded are not correlated. perfect…
A consumer has income of $3,000. Wine costs $3per glass, and cheese costs $6 per pound. Drawthe consumer’s budget constraint with wine onthe vertical axis. What is the slope of this budgetconstraint?
Question 3a. Is it possible for total utility to increase while marginal utility diminishes?Explain. b. Mary has two dinner options available: eating a home cooked meal for $150 permeal, or at a restaurant for $260 per meal. Her weekly budget is $2500.i. Draw Mary’s budget constraint, (put home cooked meal on the horizontalaxis) showing the trade-off between a home cooked meal and eating at arestaurant. ii. Draw an indifference curve showing the optimum choice. Label theoptimum as point A. iii. What would be the marginal rate of substitution at the point thatcorresponds to the optimal consumption choice? Interpret the marginalrate of substitution. iv. Suppose the price of a home cooked meal increases to $200 and incomeincreases to $4200. Show the impact of the new budget line relative to theoriginal budget line. What would be the new marginal rate of substitutionthat corresponds to the optimal consumption choice? Interpret themarginal rate of substitution.
a. Andre has a salary of $1000. He spends his entire budget on shoes and beers.The cost for a pair of shoes is $15 and the cost for can of beer is $25.i. Construct Andre’s budget constraint (place) beers on the y-axis. [4marks]ii. Suppose Andre’s salary rises by 25%. Also suppose that the price ofshoes and beers each rise by 40%. Construct Andre’s new budget constraint. What is the difference between the new and old budgetconstraints? [4 marks]iii. Suppose that the price of beers fell from $25 per beer to $15. ConstructAndre’s new budget constraint. What is the difference between the newand old budget constraints. [4 marks]b. Explain the relationship between the budget constraint and indifference curveat consumer optimum. [3 marks]
A student has a monthly budget of $120 to spend on eitherburritos, which cost $6 each, or sodas, which cost $4 each.1. What is the largest number of burritos that the studentcould afford to purchase in one month?2. What is the largest number of sodas the student couldafford to purchase in one month?3. Draw the student's budget constraint. Put burritos on thex-axis and sodas on the y-axis.Graded Assignment due Monday4. Which combinations of burritos and sodas are unaffordable--those tothe left of the line in the graph or those above the line in the graph? Why?5. Which combinations would leave some budget unspent - those to theleft of the line in the above graph or those to the right of the line in theabove graph?6. What is the equation for the student's budget constraint? In yourequation, use Q1 as the variable to represent the quantity of burritos andQ2 to represent the quantity of sodas.7. What is the opportunity cost of a burrito?8. What is the opportunity cost of a soda?9. The local…
Question 3a. Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair of shoes is $15 and the cost for can of beer is $25.i. Construct Andre’s budget constraint (place) beers on the y-axis.ii. Suppose Andre’s salary rises by 25%. Also suppose that the price of shoes and beers each rise by 40%. Construct Andre’s new budget constraint. What is the difference between the new and old budgetconstraints? iii. Suppose that the price of beers fell from $25 per beer to $15. ConstructAndre’s new budget constraint. What is the difference between the newand old budget constraints. b. Explain the relationship between the budget constraint and indifference curveat consumer optimum.