EBK MICROECONOMICS
5th Edition
ISBN: 9781118883228
Author: David
Publisher: YUZU
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Question
Chapter 4, Problem 4.1P
To determine
(a)
Expression for consumer's budget constraint.
To determine
(b)
Graph of consumer's budget line.
To determine
(c)
The maximum number of square feet of housing that the consumer can purchase given his monthly stipend.
To determine
(d)
The maximum number of movies that the consumer can attend given his monthly stipend.
To determine
(e)
Change in the graph of the consumer's budget line, when stipend and prices increase by 10 percent.
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Students have asked these similar questions
Anna is a Vancouverite who starts off her day drinking either a coffee or a bubble tea. From her part-time job, she has earned P15 that she can spend on either coffee or bubble tea over a month. A coffee costs P1, and a bubble tea costs P1.
Draw her budget line, with bubble tea on the y-axis. If she chooses to drink only coffee or only bubble tea for one month, how many of each can she drink?
Suppose you have $30 and you are going to rent some movies and buy some sodas. Suppose movie rentals are $6.00 each and sodas are $1.00 each. Your original consumption bundle is 3 movies and 12 sodas. (Hint: put movie rentals on the X axis)
a)Draw your budget line showing the different combinations of Movies that you can rent and sodas that you can purchase.
b)Suppose that movie rentals turn out to be half off ($3.00). Draw your new budget line on the same graph.
(18 points) Suppose you have $30 and you are going to rent some movies and buy some sodas. Suppose movie rentals are $6.00 each and sodas are $1.00 each. Your original consumption bundle is 3 movies and 12 sodas. Show all calculations. (Hint: put movie rentals on the X axis)
(2 points) Draw your budget line showing the different combinations of Movies that you can rent and sodas that you can purchase.
(2 points) Suppose that movie rentals turn out to be half off ($3.00). Draw your new budget line on the same graph.
(4 points) Draw the income compensated budget line and show the calculation for the income compensated budget line
(2 points) Draw an indifference curve tangent to your original budget line at your original purchase point.
(2 points) Draw an indifference curve showing where you will purchase at the new prices
(6 points) Breakdown the shift from the original point of consumption to the new point of consumption using the income and substitution effects. Please provide a…
Chapter 4 Solutions
EBK MICROECONOMICS
Ch. 4 - Prob. 1RECh. 4 - Prob. 2RECh. 4 - Prob. 3RECh. 4 - Prob. 4RECh. 4 - Prob. 5RECh. 4 - Prob. 6RECh. 4 - Prob. 7RECh. 4 - Prob. 8RECh. 4 - Prob. 9RECh. 4 - Prob. 10RE
Ch. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.8PCh. 4 - Prob. 4.9PCh. 4 - Prob. 4.10PCh. 4 - Prob. 4.11PCh. 4 - Prob. 4.12PCh. 4 - Prob. 4.13PCh. 4 - Prob. 4.14PCh. 4 - Prob. 4.15PCh. 4 - Prob. 4.16PCh. 4 - Prob. 4.17PCh. 4 - Prob. 4.18PCh. 4 - Prob. 4.19PCh. 4 - Prob. 4.20PCh. 4 - Prob. 4.21PCh. 4 - Prob. 4.22PCh. 4 - Prob. 4.23PCh. 4 - Prob. 4.24PCh. 4 - Prob. 4.25PCh. 4 - Prob. 4.26PCh. 4 - Prob. 4.27PCh. 4 - Prob. 4.28PCh. 4 - Prob. 4.29PCh. 4 - Prob. 4.30P
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