Rummy has $40 a week to spend on burger and cake. The price of burger is $5 and the price of cake is $2 a slice 1.lf rummys income increases to $60 a week and the price of burger and cake remain unchanged describe the change of his budget line.

Q: Refer to Figure #5. Assume that the consumer depicted in the figure has an income of $20. The price…

A: Answer- Need to find- The optimize bundle  Given in the question -

Q: Marge also buys pizza for $10 and Pepsi for $2.She has income of $200. Her budget constraint…

A: Budget constraint refers to the amount of expenditure incurred by a consumer to make purchases at…

Q: Popcom (baags per Sara's income is $12 a week The price of popcom is $3 a bag and the price of cola…

A: As the preference curves of the indifference curve's equations are not given, the only way to find…

Q: What is the concept of diminishing marginal utility of consumers? How consumer use Marginal Rate of…

A: "Marginal utility represents the addition to the total utility from consuming one more unit of the…

Q: Refer to the budget line shown in the diagram below. If the consumer's money income is $20, the: 10…

A: Given: Consumer income=$20 Quantity of D=10 Quantity of C=5 To find: Prices of C and D.

Q: ) Kuzey is a writer. He consumes only paper and pencils. Given his income, he chooses to consume 10…

A: Trade is an economic transaction between two or more market agents who exchange…

Q: Heart spends her entire weekly food allowance of $42 on fries and milk tea. The price of a fries is…

A: Marginal rate of substitution (MRS) measures the slope of indifference curve, which is that the…

Q: (Figure: Paloma's Budget Line) Use Figure Paloma's Budget Line. The price of a cup of tea is $3, and…

A: The budget line is a graphical delineation of all possible combinations of the two commodities that…

Q: Explain the law of Equi marginal utility with the help of schedule.

A: Marginal utility is the incremental utility or additional utility received by the individual by…

Q: Use Figure Paloma's Budget Line. The price of a cup of tea is S$3, and the price of apple cñips is…

A: Here we calculate the consumption of Tea and Consumption of apple chips by using the given budget…

Q: The figure shows Laura's budget line. Laura buys only lilies (Y) and orchids (X). Lilies (number per…

A: People can spend their income on different goods and services. The amount spends on each good…

Q: 4. Sompa consumes two goods (x and y) with a total income of GHS 20 and the price of the two goods…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Akram spends all of his income on food and clothing. When the price of clothing decreases, he buys…

A: If an item's price increases, the substitution effect occurs, resulting in a drop in profits due to…

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: Rummy has $40 a week to spend on burger and cake.The price of burger is $5 and the price of cake is…

A: It is given that the consumer prefers burger (B) and cake (C). The price of B and C are equal to $5…

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

A: The consumer consumes goods because goods have the power to satisfy human wants. The want satisfying…

Q: Draw Shahab's budget constraint if he has income of Rs. 1000 which he can spend on buying Pizzas and…

A: Budget constraint is the graph that represents the maximum purchases of the product and services…

Q: Consider the consumer only consumes two goods namely flour and potatoes. Potatoes are an inferior…

A: The consumer is said to consume only two goods which means that there are only two goods that are…

Q: 12. Wayne has $2,000 dollars to spend on Grey Cup football tickets (measured in numbers along the…

A: Answer -

Q: Y) för 1 пее (g0 a. Write out Jim's utility function. b. Jim's budget constraint is 100 = 4x + 9y.…

A: (A) U = min(2X, Y) If Y is 2, X should be 1,thus U remains constant and U is utility.

Q: Explain the consumer’s Preferences and the Indifference Curv

A: Economics: It is the study of the manner of organizing money, business and industry.

Q: Explain Substitution and Income effects of a change in price of a good  Pls provides examples and…

A: Substitution effect is found by finding the difference between consumer’s demand for good 1 at the…

Q: c) Consider John who consumes two goods, (X and Y), with prices ?? = ?$35, ?? = ?$25 and income I…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: James consumes burgers and pies. His income is $20, and when burgers and pies both cost $1, James…

A: We are going to use consumer behavior theory to answer this question.

Q: Maggie buys peanut butter and jelly, both of whichare normal goods. When the price of peanut…

A: ANS For normal goods both income & substitution effect moves in the same direction. When the…

Q: Akram spends all of his income on food and clothing. When the price of clothing decreases, he buys…

A: ‘Giffen goods’ are  where the high price[p] increases[↑] the demand(DD) (contrary to the general law…

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 has RM300 to spend on goods X and Y. The market prices of these two goods are Px = RM=15…

A: Market rate of substitution refers to the rate at which two goods can be exchanged in a market place…

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: A change in which of the following will NOT shift thedemand curve for hamburgers?a. the price of hot…

A: Determinants of demand are  price of the good (P),  Price of related goods (Pr) , Future…

Q: Mrs. Yamoah's has an income of GHS 200 to spend on two commodities Maize and Yam. Maize costs GHS…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: A consumer must divide $600 between the consumption of product X and product Y. The relevant market…

A: The Budget line is referred to as a constraint that depicts all the combinations of two goods that a…

Q: 3) For Nour doughnuts and muffins are perfect substitutes. Doughnuts are £4 a box and muffins are £3…

A: Dear student, You have asked multiple questions in a single post. I am answering question number 3…

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

A: Note: Since you want us to solve only subpart (e), we will solve the subpart (e) for you. To get the…

Q: Question No. 5| Hafidh's income is $200 a month. The price of watch is $25 a show, and the price of…

A: Given, Income = $200 Price of watch = $25 Price of jeans = $15

Q: Amy has $16 a week to spend on coffee and cake. The price of coffee is $2 a cup, and the price of…

A: Budget the combination of goods that consumer can buy with given level of income and prices.

Q: A consumer’s budget set for two goods (X and Y) is 600 ≥ 3X + 6Y.                a. Illustrate the…

A: A budget set is a collection of all conceivable combinations of two items that a consumer may…

Q: Hafidh’s income is $200 a month. The price of watch is $25 a show, and the price of a Jeans is $15.…

A: The budget line of a consumer is the locus of all maximum combinations of two goods or services the…

Q: samantha earns a weekly income of $6000.suppose  she wishes to spend this on income on two goods…

A: A) A budget line shows combination of two goods that a consumer can purchase with the available…

Q: Bob spends all his money on food and clothing. When the price of clothing falls, he buys more…

A: Substitution effect is when the price of one good falls, due to which the given good becomes…

Q: Hafidh's income is $200 a month. The price of watch is $25 a show, and the price of a Jeans is $15.…

A: Answer a) Given in question is Hafidh's income is $200. The price of the watch is $25 and the price…

Q: hector has 2000$ a month to spend on clothing and food. the price of clothing is $50 and the price…

A: Given: Income = $2000 price of clothing = $50 Price of food=$20

Q: Julian buys plants and flowers every month. Bothare normal goods. When the price of flowers…

A: In economics, price effect can be further divided into income effect and the substitution effect.

Q: Marginal Utility of Coffee (for (dollars per cup) | 1st cup) Price of Coffee Price of Orange…

A: The marginal utility per dollar (MUD) for good X can be calculated by using the following formula.

Q: Gabriel has a weckly income (N) of $50, which he uses to purchase cupcakes (C) and tea (7). The…

A: Budget line curve Px*X + Py*Y = m where Px represents price of good X Py represents price of good Y…