Suppose a student’s entire weekly pocket money (income) is spent on cafeteria’s fast food and hut’s meal. Draw his (weakly) budget line if he has total amount of Rs. 1500 per week, the price of fast food is Rs. 150 per unit and the price of meal is Rs. 100 per unit. Draw the new budget lines: a) if his pocket money/income falls to Rs. 1000 per week

Q: Alex has a budget of $100 a month for movie tickets and restaurant meals.  A movie ticket will cost…

A: Budget constraint formula:- PxX+PyY=I where; Px= Price of good x X= Quantity of good x Py= Price of…

Q: Suppose you have $48 to spend on the two items in the graph below. Q books 4 A 1 2 6 8 Q…

A: If movie costs $8 line B represents my budget constraint. If books costs $12 line B represents my…

Q: Mika earns $232 per week which she spends entirely at the grocery store, purchasing either food or…

A: In the consumer theory, an individual maximizes his utility by consuming at a point where the…

Q: Suppose the price of Pizza is $10 the price of cola is $1, and the consumer's income is $60. In…

A: The budget line is a straight line that represents a different combination of two goods a consumer…

Q: The initial budget constraint (BC¡) shows the Lacostes' budget constraint when the price of a fancy…

A: A compensating variation is the amount of extra money that a consumer will need to reach to their…

Q: Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…

A: Mary has two dinner options available: eating a home-cooked meal for $150 per meal, or at a…

Q: Assuming the two good case.  When a person is attempting to maximize utility and the price of one of…

A: The term utility refers to the want satisfying power of any commodity. The associated term is…

Q: Suppose the price of pizza is $10, the price of cola is $1, and the consumer's income is $60. In…

A: Given that Income(M)= 60 Px= Price of pizza = $10 Py= Price of Cola =$1

Q: The initial budget constraint (BC1) shows the Gaffneys' budget constraint when the price of a fancy…

A: The income from dining experiences and morning diners must be -- 7 x 50 + 67 x 5 = $685. (They…

Q: Suppose a student's entire weekly pocket money (income) is spent on caf eteria's fast food and hut's…

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

Q: Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…

A: The budget line and the optimal consumption point are found out as follows:…

Q: Emi’s available income each week for expenditures on food (F) and clothing (C) is $40. The price of…

A: 1)Within Emis consumption possibilities 5*2=10 3*10=30 10+30=40 It would lie on her budget line.

Q: Cathy has $240 to spend on cherry and/or coconuts. Suppose you have drawn her budget line for cherry…

A: Budget line shows different combinations of two goods that can be bought with the given level of…

Q: Charles lives in New York City and loves to eat desserts. He spends his entire weekly allowance on…

A: The utility is maximum at the marginal utility per dollar is equal and in other words, the MRS is…

Q: Marissa has $30 to spend on beer and hamburgers. Beers are $3/beer and hamburgers are $5/hamburger.…

A: Budget constraint: - it is a graphical representation of different bundles of goods that a consumer…

Q: Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…

A: Given:Cost of each homecooked meal=$150Cost of each restaurant meal=$260Weekly budget=$2500

Q: Scenario: Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor,…

A: 1)There are 2 budget lines in this example. Budget line trading with friday has the limit upto 20…

Q: A consumer has $300 to spend on goods X and Y. The market prices of these two goods are Px = $15 and…

A: (1) A budget constraint is an economic word that refers to the total amount of products you can…

Q: A budget constraint, budget set or budget line: 1. Illustrates the combination of units of…

A: The economics is considered to be a very vast area of study, as economics is used in everyday life,…

Q: Suppose Musashi has a weekly budget of $24 to spend on juice and yogurt. Juice is priced at $2 per…

A: The budget line shows the combination of two goods that a consumer can afford given the prices of…

Q: Avery is currently using up the entire weekly budget she has allocated to purchasing Goods X and Y.…

A: Given  Marginal utility on last unit of good X  that Avery buy by using weekly income = 14 and last…

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

A: Given:Maria's income is $2000,price of food (PF) is $5 and price of clothing (PC) is $20 Maria can…

Q: Suppose a consumer's marginal rate of substitution is three slices of pizza for one coke. If the…

A: It is given that the consumer has marginal rate of substitution (MRS), which is three slices of…

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

A: Budget constraint is said to be a combination of goods that a consumer can purchase with given…

Q: Suppose that the price of commodity Y is $ 20 per unit while the price of commodity X is $ 15  per…

A: Any consumer have unlimited demand but have limited resources to satisfy the demand and due to the…

Q: Miss Coco consumes cheese cake and curry puff. Her consumption yields the following total utility as…

A: Given; Price of cheese cake= RM8 Price of curry puff= RM4 Income; M= RM52

Q: Mrs. Griffiths earns $5000 a week and spends her entire income on dresses and handbags, since these…

A: Mrs. Griffith's income = $5000 She buys two commodities - dress (D) and handbag(H)

Q: Complete the table. Use your results to answer the following questions. Units of product A Total…

A: Utilty is defined as the satisfaction which the consumer gets by consuming the homogeneous units of…

Q: Mike is a jellyfish wrangler.  In June and July he spent his budget on fish tanks and wet suits.…

A: Marginal Utility: - marginal utility is the utility derived by the consumption of an additional…

Q: If the consumer respects his budget constraint, he can purchase any commodity bundle ___.   a. above…

A: The consumers are considered to be the buyers, who purchase goods, and services which are sold by…

Q: Suppose that price of good X falls by 50 % while price of Y falls by 25% and Income falls by 50%.…

A: Assume the budget line before the change is : 10x+20y=200 Px=10 and Py=20 Price of x falls by 50%…

Q: Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on pudding…

A: Marginal rate of substitution can be explained as the rate at which a consumer is willing to give up…

Q: Suppose that the price of commodity Y is $1 per unit while the price of commodity X is $2 per unit…

A: The budget constraint refers to the combination of two goods that a consumer can buy with the…

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

A: Changes in prices  lead to shift in budget curve  If price increases it reduces the purchasing power…

Q: Suppose Cawlin has a budget of $90 that he spends on movies (Q) and roller skating (Qa. The price of…

A: The budget constraint of a consumer is the maximum amount of two goods which a consumer can buy…

Q: A budget constraint line represents the different combinations of two goods that will yield the…

A: The budget set (all bundle options on or below the budget line) shows all potential bundles of…

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: Miss Coco consumes cheese cake and curry puff. Her consumption yields the following total utility as…

A: Marginal utility is the additional utility gained from consuming an additional unit of the good.

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: The budget line represents the combination of the two goods that can be purchased with the given…

Q: Suppose Sam has a weekly budget of $48 to spend on juice and yogurt. Juice is priced at $4 per…

A: Given  Weekly budget of Sam = $48  Price of juice =$4 per gallon yogurt price = $2 per container

Q: A student has a monthly budget of $120 to spend on either burritos, which cost $6 each, or sodas,…

A: Budget line shows or exhibits the different combinations of two goods that a consumer can buy with…