The blue budget line is for an income of $1000, Px=$5 and Py=$10. At point A, the person is evenly dividing his income between purchases of good X and Y. At point B, the person is buying 20 units of Good X. At point C, the person is buying 0 units of good Y and how many units of Good X. Good X B Good Y

Q: If a good is considered to be a normal good it has a relationship with income.

A: The good or services are the commodities that adds value. It satisfies the human wants by…

Q: Explain the consumer equilibrium point by using Indifference Curve Approach and the Budget Line.…

A: Budget line shows the constraint of income ie beyond which the consumer cannot spend.  Indifference…

Q: Suppose a consumer has an income of $40, the price of A is $5, and the price of B is $4. Which of…

A: Here we calculate the combination of consumer budget line by using the given data and choose the…

Q: Enumerate at least five interpretations of the graph of the Total Utility curve

A: Total utility: It is the total amount of utility that will be achieved by the consumers by consuming…

Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice, O, $1 each. Her income is…

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

Q: When a consumer earns a higher income, it rotates the budget line outward around the point where it…

A: A BL (budget line) demonstrates the two commodities whose combination a consumer can render to buy…

Q: How does a rational consumer choose his optimal consumption bundle? Graphically show the…

A: The economics as a study is based upon the idea that the economies, and the societies around the…

Q: Consumer attains his or her equilibrium at a point where the budget line:- (1) is below indifference…

A: The consumers in an economy are considered to be one of the most important entities in the market.…

Q: An increase in a consumer's income causes her budget set to encompass […

A: When consumers income increases,more goods would be bought with the same amount of income.

Q: The consumer's initial budget line is I with income equal to S3000. The budget line then shifts from…

A: A graphical representation in which all possible combinations of two products are purchased with…

Q: The consumer is in equilibrium at a point where the budget line

A: Consumers are balanced at the intersection of the budget lines.

Q: An equation that represents a utility-maximizing pattern of consumption of two goods, A and B, is…

A: Utility Maximising Condition of consumption of two goods A and B: Slope of Indifference Curve =…

Q: The CHRIS AND DAVID problem Each day Chris buys 2 coffees and 1 tea. Where Chris resides, coffee is…

A: Chris: 2C+1T PC= $1 PT= $0.5 David: 1C+2T PC= $0.5 PT=$1

Q: Total utility is maximized when marginal utility becomes (positive, zero, negative)

A: The utility is a want satisfying power of a commodity. Marginal utility is the additional utility…

Q: A halving of the prices good A and good B has the same effect on the budget line as doubling the…

A: The graph that depicts all of the combinations that are possible to be brought with the given income…

Q: An indifference curve slopes down towards right since more of one commodity and less of another

A: To find : Indifference curve slopes down towards right since more of one commodity and less of…

Q: Consider the following figure showing three budget lines corresponding to a change in income (with…

A: Income elasticity of demand: - Income elasticity of demand measures the responsiveness of change in…

Q: Refer to Figure#4 Which of the following statements is true for a consumer who moves from point A to…

A: The above graph shows the different indifference curves. Indifference curves is the locus of…

Q: If the consumer's income rises to $100 while the prices of pizza and cola are constant, then the…

A: Budget line would increase and rotate outwards towards cola axis.

Q: Originally the consumer faces the budget line p1x1 + p2x2 = m.What happens to the budget line if the…

A: "Budget is an estimate of earnings and expenses of a household, business or the government. "Budget…

Q: How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?

A: If prices and consumer’s income will be double then there is no effect in budget constraint and it…

Q: The marginal utility of the 8th can of beer is

A: In economics, marginal utility refers to the additional satisfaction or benefit (utility) a buyer…

Q: A consumer has a Cobb-Douglas utility function and consumes two goods x and y. If the price of good…

A: Introduction: The utility function in economics assesses a consumer's well-being or pleasure as a…

Q: Higher Indifference curve means: (a) Consumer has more income (b) Price of goods have reduced (c)…

A: Concerning two commodities, an indifference curve is a graph that shows which combinations of the…

Q: Brady, who has ordinary-shaped indifference curves, buys 16 ounces of salt each year. Even when the…

A:

Q: As the price of a good rise, the consumer will experience Select one: a. a southwesterly movement…

A: Indifference curve:- Indifference curve can be defined as a graph that represent different…

Q: Why is “consumer's utility is impossible to measure and quantify? Explain your answer.

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: The income of a consumer is $40, the price of A is $5, and the price of B is $2. If the quantity of…

A: We are going to find the slope of budget equation to answer this question. Slope of the budget line…

Q: Assuming utility positively depends on two goods, indifference curves can cross or intersect. True…

A: Indifference curve is a graphical representation which shows different level of combinations of two…

Q: Suppose a consumer only purchases food and clothing, and food plotted along the horizontal axis of…

A: Indifference curve: It refers to that curve which shows the combination of two different goods…

Q: Which of the following statements is true? a. An indifference curve represents combinations of…

A: An indifference curve basically refers to a graphical depiction of a combination of two items that…

Q: Suppose the price of an M&M is $2.00, the price of Skittles is $3.00, and the budget is $24. M&Ms…

A: Budget line shows the combinations of two goods that a consumer can purchase at given market price…

Q: Consider the following figure showing three budget lines corresponding to a change in income (with…

A: The Engel curve shows the relationship between the income and the demand of a particular good…

Q: gopal is a rational consumer and consumes two goods x and y. is a cardinal measure of utility or…

A: A combination of two things that deliver the same amount of enjoyment to the consumer is depicted by…

Q: Good 1 If the two lines in the diagram above are parallel and shift in the direction of the arrow,…

A: Shifting of budget line due to change in income or change in price level , so here we conclude the…

Q: If the slope of the indifference curve between goods X and Y is steeper than the slope of the budget…

A: The indifference curve shows a combination of two goods that gives an equal level of satisfaction…

Q: Suppose there are 2 commodities ( good x and good y( and the consumer faces the following prices,…

A: In consideration of the bundle of 10 units of x and 0 unit of y, total cost will be $10 ( = $1*10 +…

Q: Marginal utility analysis predicts a downward-sloping demand curve for good X because... a. As PX…

A: Answer in step 2

Q: Why does total utility increased as the consumer moves to an indifference curve farther from the…

A: The indifference curve is defined as the locus of points of the combination of two goods, which…

Q: True or false.  A change in prices or income can alter preferences and thus the indifference curves…

A: In the mentioned question, we are asked whether there is any shift seen in the indifference curve…

Q: Suppose you consume xl unit of Goods 1 and x2 units of Goods 2, the utility you get is U(x1, x2) =…

A:

Q: The budget line shows: all possible combinations of two goods that yield the same level…

A: Budget lines shows the combination of expenditure's of two different goods and the given level of…

Q: Higher Indifference curve means: (a) Consumer has got increment in income (b) Higher utility (c)…

A: # by the name itself we can understand that all the points which lie on an indifference curve…