Why do people buy more goods and services when their budget increases?

Q: How does a consumer determine how much of a good he or she will buy?

A: Consumer- Consumer is a person who purchases goods and services for the maximum satisfaction of…

Q: In the 1940s, you could buy a soda for 5 cents, eat dinner at a restaurant for less than $1, and…

A: It is given that, Price of 1 soda = 5 cents, new property cost $10,000 and dinner costs less than…

Q: What factors commonly influence a person’s daily buying choices? Select one of these and explain how…

A: These are the factors which influence a person’s daily buying choices: The income of the consumer:…

Q: What does the point on a budget line indicate in terms of prices?

A: # A budget line of the consume represents the price of the two goods and the budget of the income of…

Q: Explain how a rational consumer decides which goods to buy. Note: you must discuss the role of…

A: The consumer prefers to buy the goods and services which provide them maximum satisfaction after its…

Q: What is meant by the term “utility,” and how does it relate to purposeful behavior?

A: In economics, the problem of scarcity which is universal in nature is studied and addressed. Because…

Q: Suppose John decides to buy 4 units of food and 4 units of clothing with his $12 budget. Would his…

A: Marginal utility is defined as the additional utility derived from the consumption of an extra unit…

Q: What is goods

A: In economics, there are two types are items sold in the market: goods and services. Both these items…

Q: Give an example of inferior good and an example of normal good that you have encountered and how has…

A: Normal goods and inferior goods are characterized based on how a good's demand responds to a change…

Q: Suppose that a consumer has an income of $10 per period, and that he must spend it all on meat or…

A: Ans. The consumer's budget line is the graphical representation of all possible combinations of two…

Q: Do you think that it is better to be efficient or to have a choice about prices, color, size, etc.?…

A: Almost certainly the pure competitive industries are effective as in pure competitions the useful…

Q: If this consumer has $13.00 to spend on cans of beer and slices of pizza in any given week, then…

A: Answer: A consumer maximizes his/her utility where the following conditions are satisfied:…

Q: . You consume only coke and pasta. One day, the price of coke goes up, the price of pasta goes down,…

A: The IC (indifference curve) represents the combinations of two products that yield the same utility…

Q: budget surplus, what could you do about it?

A: If I have a budget surplus that is my total revenue of a period ( say month) is greater than total…

Q: How does a rational consumer, with given income and tastes, allocate his income among available…

A: (Q) How does a rational consumer, with given income and tastes, allocate his income among available…

Q: What is a budget line

A: Purchasing behavior is the decisions of consumers taken to purchase a particular type of product or…

Q: What is consumer behavior and why is it important?

A: Consumer behavior is an important microeconomics concept.

Q: How can time be incorporated into the theory of consumer behavior? Explain the following comment:…

A: Consumer choice theory analyzes how individuals maximize the total utility to be derived from the…

Q: Marie has a weekly budget of $24, which she likes to spend on magazines and pies. 1) If…

A: In economics, a budget constraint represents all the combinations of goods and services that a…

Q: Discuss Budget line

A: A budget refers to an estimate of revenues and expenses that are to be incurred in the future and…

Q: What are the points of MAXIMIZATION?

A: The maximization is the point where the marginal revenue equals the marginal cost. The marginal…

Q: The income of consumer has got increased and the consumer's demand for good X has also increased.…

A: If the consumer's income is increasing this means that the consumer can now afford more goods and…

Q: Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y…

A: In economics, utility refers to the overall satisfaction derived from the consumption of a good or…

Q: What inferior goods that people buy?

A: Demand for inferior products is often determined by client behavior. Inferior smart refers to…

Q: What is meant by the term “utility” and how does the idea relate to purposeful behavior?

A: Utility and purposeful behavior are two important concepts of consumer demand theory. To define the…

Q: 1. If the consumer can only buy product x, how much will the consumer buy and what will be the total…

A: PX= $4 Py= $2 M= $20

Q: What are the two things consumers can do with income?

A: Income is the financial gain earned during a particular period of time.

Q: the relationship between economic well-being and social well-being (i.e happiness)?

A: Economic well being deals with the financial stability, investment and assets. It deals with the…

Q: The table below shows the total benefit, in dollars, that Andrew derives from consuming two goods,…

A: The total benefit is the benefit received by the consumption of the good. Marginal benefit is the…

Q: Individuals who buy second homes usually spend less. Why is this the case?

A: Utility: The term utility refers to the satisfaction that a person receives by consuming the goods…

Q: Given the market price of a good, how does a consumer decide as to how many units of that good to…

A: First we need to understand what is marginal utility. Marginal Utility - It is the additional…

Q: How do you determine a budget for personal consumption?

A: A monthly budget is a structured financial planning tool that assists you in determining how much…

Q: What is budget?And what are the determinants of the demand?

A: Demand is the total amount of goods and services that people are willing and able to purchase with…

Q: When a rational individual elects to save a portion of his/her disposable income then what does that…

A: Disposable income is the amount of money available to an individual or household to spend or save…

Q: Read the article. How important are cellphones in our lives right now? Do you ever see them becoming…

A: The advancement in technology has taken over every individual's life in today's era. Mobile phones…

Q: For most goods if a consumer's income increases his demand for the goods will do what?

A: Consumers use their income to purchase goods and services. In consumer demand theory, the level of…

Q: Marie has a weekly budget of $24. Pie's are $12. Magazine's are $4. What is the maximum number of…

A: The amount of goods that a consumer can purchase over a given period of time is limited by the…

Q: In what way may the income of the consumer affect his buying behavior?

A: The income of the consumer is the amount that the consumer has to spend on various goods and…

Q: Suppose that with a budget of $100, Deborah spends $60 on sushi and $40 on bagels when sushi costs…

A: Income effect is the price effect which affects the real income of the people when the price of any…

Q: What happens to the utility we get from each additional unit we consumed?

A: Utility refers to the want satisfying capacity of the individuals that includes the consumers those…