Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Chapter 9, Problem 12APA
To determine
Relative
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The only goods you buy are apples and oranges. Both apples and oranges sell for $1 a piece, and your income is $10 a day.
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Antonio buys five new college textbooks during his first year at school at a cost of $80 each. Used books cost only $50 each. When the bookstore announces that there will be a 10 percent increase in the price of new books and a 5 percent increase in the price of used books, Antonio’s father offers him $40 extra. What happens to Antonio budget line when the price of new books increases by 10 percent? Is Antonio worse or better off after the price change
Last week Sara’s income was $12 a week. The price of popcorn was $3 a bag, and theprice of a smoothie was $3.a. Calculate Sara’s real income in terms of smoothies and her real income in terms ofpopcorn.b. What is the relative price of smoothies in terms of popcorn?c. What is the opportunity cost of a smoothie?d. Calculate the equation for Sara’s budget line (with bags of popcorn on the left side).e. Draw a graph of Sara’s budget line with the quantity of smoothies on the x-axis.f. What is the slope of Sara’s budget line? What determines its value?
Chapter 9 Solutions
Microeconomics (13th Edition)
Ch. 9.1 - Prob. 1RQCh. 9.1 - Prob. 2RQCh. 9.1 - Prob. 3RQCh. 9.1 - Prob. 4RQCh. 9.1 - Prob. 5RQCh. 9.2 - Prob. 1RQCh. 9.2 - Prob. 2RQCh. 9.2 - Prob. 3RQCh. 9.2 - Prob. 4RQCh. 9.3 - Prob. 1RQ
Ch. 9.3 - Prob. 2RQCh. 9.3 - Prob. 3RQCh. 9.3 - Prob. 4RQCh. 9.3 - Prob. 5RQCh. 9 - Prob. 1SPACh. 9 - Prob. 2SPACh. 9 - Prob. 3SPACh. 9 - Prob. 4SPACh. 9 - Prob. 5SPACh. 9 - Prob. 6SPACh. 9 - Prob. 7SPACh. 9 - Prob. 8SPACh. 9 - Prob. 9SPACh. 9 - Prob. 10SPACh. 9 - Prob. 11SPACh. 9 - Prob. 12APACh. 9 - Prob. 13APACh. 9 - Prob. 14APACh. 9 - Prob. 15APACh. 9 - Prob. 16APACh. 9 - Prob. 17APACh. 9 - Prob. 18APACh. 9 - Prob. 19APACh. 9 - Prob. 20APACh. 9 - Prob. 21APACh. 9 - Prob. 22APACh. 9 - Prob. 23APACh. 9 - Prob. 24APACh. 9 - Prob. 25APACh. 9 - Prob. 26APACh. 9 - Prob. 27APACh. 9 - Prob. 28APACh. 9 - Prob. 29APACh. 9 - Prob. 30APA
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- Suppose the price of a football is $20 and the price of a basketball is $10. The ___ of a football is ___. A. Relative price; 2 basketball per football B. Relative price; 1/2 basketball per football C. Opportunity cost 10 D. Opportunity cost 20.arrow_forwardK Petra buys 6 smoothies and 2 album downloads a week when she has $36 to spend, the price of an album download is $9, and the price of a smoothie is $3. What is the relative price of an album download? If the price of an album download falls to $4.50, how do Petra's consumption possibilities change? The relative price of an album download is consumption possibilities A. 3 smoothies; expand B. 0.33 smoothies; shrink C. $9; expand D. 3 album downloads; expand E. 0.33 album downloads; shrink If the price of an album download falls to $4.50, Petra's. Hand written solutions are strictly prohibited.arrow_forwardIf butter is the product, what happens when the price of magarine goes up?arrow_forward
- Question. If the price of hot dog is $2 and the price of a hamburger is $4, then the A. Relative price of a hot dog is 1/2 of a hamburger per hot dog. B. Money price of hot dog is 2 hamburger per hot dog. C. Relative price of a hamburger is 1/2 of a hot dog per hamburger. D. Money price of a hamburger is 2 hot dongs per hamburger.arrow_forwardGiven the market price of a good, how does a consumer decide as to how many units of that good to buy? Explainarrow_forwardRia has an income of $1,200. She consumes two types of goods, shoes and handbags. Suppose the price of a pair of shoes is $400, and the price of a handbag is $200. What is the opportunity cost of each good?arrow_forward
- Tamara bakes cheesecake for sale. She realises that the price of her flour has gone up. As a result, she increases the price of her cheesecake, but her customers bought less. A. With the aid of a diagram, explain to Tamara the impact of the increase in the price of flour on her ability to bake cakes for her customersarrow_forwardSuppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings on candy bars and bags of peanuts. The price of candy bars is $.75 and the price of peanuts is $1.50. Suppose that you had won $30 on your ticket, not $15. Show the $30 budget line in your diagram. Why would this budget line be preferable to the old one?arrow_forward1. Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each hour devoted to good B yields 2 units whereas each hour devoted to good A produce 4 units. a. A tropical storm creates a shortage of the items needed in the production of Good B. Explain how this would affect the production possibilities curve.arrow_forward
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