Economics: Principles & Policy
14th Edition
ISBN: 9781337912679
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning US
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Chapter 3, Problem 4TY
To determine
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Stan Moneymaker needs 15 gallons of gasoline to top off his automobile’s gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.10 per gallon on the price of gasoline. Suppose gasoline costs $3.90 per gallon and Stan’s car gets 25 mpg for in-town driving. Should Stan make the trip to get less expensive gasoline? Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of $0.02 on the environment. What other factors (cost and otherwise) should Stan consider in his decision making?
Use the table with data for Maria and Jose to answer the question.
Table: Maria and Jose Produce Strawberry Jam
Jose charges $8 per
jar.
Maria charges $8 per Maria earns $200, and | Maria earns $50, and
Jose earns $180.
Jose charges $4 per jar.
Jose earns $280.
jar.
Maria charges $4 per
jar.
If Jose charges $8, Maria should charge
Maria earns $300, and Maria earns $180, and
Jose earns $40.
Jose earns $150.
If Jose charges $4, Maria should charge
$8; $8
$4; $4
$8; $4
O $4; $8
Potatoes cost Janice $0.50 per pound, and she has $5.00 that she could
possibly spend on potatoes or other items. Suppose she feels that the first
pound of potatoes is worth $1.50, the second pound is worth $1.14, the third
pound is worth $1.05, and all subsequent pounds are worth $0.30 per
pound.
Instructions: Enter your answers as a whole number.
a. How many pounds of potatoes will she purchase?
pound(s) of potatoes
b. How many pounds will she purchase if she has only had $2.00 to spend?
pound(s) of potatoes
Chapter 3 Solutions
Economics: Principles & Policy
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- Janice really likes potatoes. Potatoes cost $1.00 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? b. What if she only had $3.00 to spend?arrow_forwardJanice really likes potatoes. Potatoes cost $1.10 per pound, and she has $6.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? pound(s) of potatoes b. What if she only had $3.00 to spend? pound(s) of potatoesarrow_forwardTim and Alyssa are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Plot the Product Possibilities Frontier of Alyssa and the Product Possibilities Frontier of Tim.arrow_forward
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