Suppose NAWEC charges D5 for every kilowatt hour of electricity for the first 1000 used in a month and D7.5 for each extra. Kilowatt hour after that. Draw the budget constraint for George who face this price schedule. Discuss why many Gambian may choose to consume exactly 1,000 kilowatt hour.

Q: Suppose the price of goods X and Y are Px = 4 and Py = 2. with their current consumption bundle, a…

A: Indifference curves are curves exhibiting several combinations of two commodities or services that…

Q: Question 14 (2 8. R 3. T-shirts The above diagram represents Ken's budget constraint for T'shirts…

A: Price has an inverse relationship with quantity demanded.

Q: Robinson makes $200 a week and spends his entire income on running shoes and basketball shorts.…

A: As per given data, first We can analyse the optimal coñsumption pattern of Mr Robinson using budget…

Q: Graduate students at University of Massachusetts consume only two goods: rental apartment space…

A: Budget Constraint refers to the combination of two goods that a consumer can purchase with the given…

Q: In this hypothetical economy. there are two consumers living over two periods of life. Ann's incomes…

A: Ann's Income 1st Period = 50,000 2nd Period = 50,000 Bob's Income 1st Period = 0 2nd Period =…

Q: Suppose that Marissa is interested in buying some beers and hamburgers. Her budget constraint for…

A: A budget constraint graphs the combination of two goods that a consumer can purchase with a given…

Q: Question Earlier this year, 2021, the price of chicken meat rose unexpectedly reached to 250/ kilo…

A: Initial price of chicken meat = 170/kilo  Final price of chicken meat = 250/kilo Absolute increase…

Q: There are two goods in the economy: electricity (E) and the composite good (Y). Suppose the…

A: Let Y the composite good be on the Y-axis and electricity is on the X-axis. P(E)=5 Yen for 1st 20…

Q: The budget constraint displays a price of good Y equal to $3.00 and a price of good X equal to…

A: Price of good X is $3 Price of good Y is $3 Bundle A consists of 16 units of good X and 10.67 units…

Q: Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns a…

A: Budget line is a graphical representation of all possible combinations of two goods which can be…

Q: For their birthdays, Vivaan and Saanvi, who are brother and sister, each received 25 iTunes music…

A: Pareto improvement to a system is said to have occurred when a reallocation of resources leaves no…

Q: consider your decision about how many hours to work. draw your budget constraint assuming that you…

A: Budget constraint is defined as the possible combination of goods and services that is purchased at…

Q: a consumer has income of RM 3,000. Orange Juice costs RM3 glass and chicken rice cost RM6 a palte.…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: There are two goods in the economy: electricity (E) and the composite good (Y). Suppose the…

A: The government is providing a subsidy to the consumers for the initial 20kwh of electricity they are…

Q: . Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns…

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

Q: 17) Assume a consumer has $40 to spend and for both products the marginal utilities are shown in the…

A: Consumer preference is outlined as a group of assumptions that specialise in client selections that…

Q: Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns a…

A: the equation of budget constraint is Y*py + B*pB = income we can calculate the price from the…

Q: Simone likes peanut butter and jelly (PB&J) sandwiches. When Simone makes a PB&J sandwich she always…

A: Indifference curve analysis is the analysis of the consumer behaviour wherein the person tends to…

Q: . Make a graph with the budget constraint showing the trade-off between lifetime consumption and…

A: The income effect is a variation  on the  consumption because of the price change and after that…

Q: Suppose that at current consumption levels an individual's marginal utility of consuming an extra…

A: Marginal rate of substitution is the rate at which keeping the utility constant substituting one…

Q: I have to create a budget constraint for two cars with the median income. However, the income is…

A: This chapter is related to budget. A budget is an estimate of income and expenditure for a future…

Q: Suppose that the price of commodity Y is $2 per unit while the price of  commodity X is $4 per unit…

A: A budget line shows all the combination of two goods that a consumer can purchase with his/her given…

Q: uppose a consumer has preferences between two goods that are perfect substitutes. In this case would…

A: Two goods are substitutes in microeconomics if they may be utilized for the same purpose by the…

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

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

Q: Angela has $90 to spend on movies and books. The price of movies (M) is $10 and the price of books…

A: PM= $10 PB= $15 I= $90

Q: 1. a consumer has income of rm3000. orange juice costs rm3 a glass, and chicken rice costs rm6 a…

A: Hi! Thank you for the question but as per the guidelines, we only answer one question at a time.…

Q: Earlier this year, 2021, the price of chicken meat rose unexpectedly reached to 250/ kilo at peak…

A: Answer 1 The law of demand refers to the inverse or negative relationship between the quantity…

Q: For two goods that I consume and I like both of them, say hamburger and Ice Latte, if hamburger is…

A: Given:  Two goods : Hamburgers and Ice Latte A uniform ad valorem tax of 8% is levied on both of…

Q: January is choosing how much of pudding (measured on the horizontal axis) and how much of meat…

A: There are two goods, i.e., pudding and meat. The price of the pudding is $1.25 per pound. The price…

Q: Juan is currently working in a job that pays $25 an hour and he chooses to work 8 hours per day.…

A: Budget line  The budget line depicts all possible combinations of the two commodities that can be…

Q: 6. Graduate students at University of Massachusetts consume only two goods: rental apartment space…

A: Hi there , as per our guidelines we are only allowed to answer 3 sub parts of a question . Kindly…

Q: Firzaowns 3 iced milk coffee bottlesand 9 toasted bread while Razi owns 8 iced milk coffee bottles…

A: If two people have utility functions for two things as well as endowments for the two goods. The…

Q: Malcom only consumes 2 goods - Good A and Good B. His budget constraint is 4A+2B=400, which means…

A: Let us consider that the amount of A consumed is denoted by "A" and the amount of B consumed is…

Q: Tia and Lia consume bread (R) and clothes (B) with the following utility functions: Tia : UT = 30…

A: Utilities of person T and L are given here as,  UT = 30 R0.25 B0.75 UL = 50 R0.5 B0.5  R stand for…

Q: Assume that Sara has $800 per month to divide between playing golf and playing paint ball . Assume…

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

Q: Suppose your only source of income is work and that you are paid $20 per hour. This determines a…

A: Higher salaries have a substitution impact, which indicates that workers will forego leisure time in…

Q: Madeline lives in Melbourne, where she buys kiwis at $10 per box and bananas at $9 per a bunch. With…

A: Disclaimer: Since you have posted multiple questions, I am providing you with the answer to the…

Q: Simone likes peanut butter and jelly (PB&J) sandwiches. When Simone makes a PB&J sandwich she always…

A: In this case peanut butter and jelly are complement in making the sandwich.

Q: Suppose a family (with 1 child) earns $50,000 per year and there is no publicly provided education.…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Suppose a family (with 1 child) earns $50,000 per year and there is no publicly provided education.…

A: The wants of consumers are unlimited but they are forced to make choices because of the budget…

Q: The following graph illustrates the combination of apples and oranges (point A) that maximizes…

A: Since Price of Y has doubled,  the vertical intercept will come down to 25 horizontal intercept will…

Q: Solve the attachment.

A: Indifference curve shows the combination of two goods for which individual are indifferent.

Q: Suppose Olivia has an income of $800/week for which she can use to consume two goods: entertainment…

A:

Q: Amy is in school learning to weld. She spends long hours studying (and drinking coffee), and long…

A: Answer: Given, Total income of Amy=$70.00 Price of soap=$3.50 per bottle Price of coffee=$14.00 a…

Q: equilibrium this individual consumes 7 pizza and 6 coke. What rules must hold in consumer…

A: Given : Income=1000 Price of Pizza=100 Price of Coke=50

Q: John has $300 as income and he uses his income only for apples and bananas. If he uses his income…

A: Budget line is the two goods possible combinations that a consumer can buy with given level of price…

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.