Cathy has $240 to spend on cherry and/or coconuts. Suppose you have drawn her budget line for cherry and coconuts with cherry on the horizontal axis and coconuts on the vertical axis. If the price of coconuts increases by 20% and Cathy's income increases by 20%, but the price of cherry remains the same, then O the budget line shifts outward in a parallel fashion the budget line shifts inward in a parallel fashion O the budget line becomes steeper O the budget line becomes flatter none of the above
Q: Suppose there is a small town with two high-end restaurants. Suppose additionally that a major…
A: Since the question you have posted consists of multiple parts, we will answer the first three parts…
Q: is the firm's total cost function? TC = 20,000 + (1,000q). TC = 1,000q. TC = 20,000. 20,000 +…
A: A firm has a fixed production cost of $20000 and a constant marginal cost of production of $1000 per…
Q: A certain simple economy has two sectors: work and play. To produce $1 of work requires $0.7 of work…
A: Most economic decision-making involves the concept of opportunity cost. Basically, what is given up…
Q: Suppose that a country has a produ ction function, where Lis labour, K is capital and A is total…
A: At steady state, change in capital per worker is zero, that is investment equals break-even…
Q: Given the information on the graph below, a) find the firm's short-run output and profit for the…
A: Given graph In the graph given curves are marginal cost curve, average cost curve and average…
Q: 4. In this case, what actions must the Central Bank take to maintain this fixed exchange rate?…
A: 4. Exchange rate: - the exchange rate is the rate at which the currency of one country can be…
Q: AD will shift to the right, other things being equal, when
A: aggreagate demand is defined as the total demand of goods and services within an economy. Now, AD =…
Q: You manage a plant that mass produces engines by teams of workers using assembly machines. The…
A: Total cost is the sum of fixed cost and variable cost. Variable cost depends on production whereas…
Q: NBA players in 2021 were paid an average of 1.5 million dollars per year. What salary from 1970…
A: Inflation is the general rise in price level during the year . It is calculated as the CPI(2021)-…
Q: In a market with a negative externality, like houses being painted with lead paint, the quantity…
A: Negative externality creates an external damage to the third party who is not directly involved in…
Q: Has labor benefited from or been hurt by unionization, improvements in technology and globalization?
A: Unionisation is the process of formation of group of individuals who represents the labourers and…
Q: Best firms adopt which of the following Corportate Social Responsibilty strategies? O Proactive…
A: Corporate social obligation, or CSR, is a type of self-guideline that mirrors a business'…
Q: All of these are correct regarding types of economic evaluation EXCEPT: a. In Cost Benefit Analysis,…
A: In the economic evaluation, Cost-utility analysis is an analysis that is used to compare the cost…
Q: b. An increase in both demand and supply. c. A decrease in supply only. d. A decrease in both demand…
A: The equilibrium price is the only price where the plans of consumers and the plans of producers…
Q: Determine the equilibrium quantities of commodities x and z for a consumer whose total utility (U)…
A: The term "consumer equilibrium" refers to a scenario in which a consumer is completely satisfied…
Q: I need help with 5.1 A only . Question is … Tustrate the following with supply and demand curves: 8.…
A: The Demand Curve is the number of goods a consumer is willing to produce. The supply curve is the…
Q: Demand function: Qd = 3550- 266p Supply function: Qs = 1526+ 240p Question:…
A: "Equilibrium occurs at a point where demand function intersects (equates) the supply function i.e.…
Q: Let the demand function for a product be Q = 50- 5P. The inverse demand function of this demand…
A: Demand curve shows an inverse relationship between price and quantity demanded. The curve slopes…
Q: Dollars /MC ATC per 10 8 VMR D. H000 13,000 000'0 O 76 5
A: In a monopolistic competitive market, marginal revenue curve lies below the demand curve because the…
Q: A decrease in proportional consumption tax makes the budget constraint A. flatter…
A: Budget constraint is combination of consumption which someone can afford with given prices and…
Q: Answer the following options Q#9) What has been true about the long term growth rate and growth…
A: GDP is the monetary worth of all products and services generated inside a country's borders in a…
Q: Pls answer as soon as possible, thank you What is an engineering economy? Give 5 examples of its…
A: Definition Engineering economics is a branch of economics refers to the application of economic…
Q: Following the economic boom in Australia in 2004, the Reserve Bank and the government adopted a…
A:
Q: What is the total fixed cost of Firm A, a perfectly competitive firm facing the demand d, at the…
A: In perfectly competitive market, there are large number of firms selling identical goods.
Q: MC $22 ATC 18 16 AVC 14 D = AR 11 MR Q 12 17 22 Based on the above graph for a monopolist, at the…
A:
Q: The profit-maximizing monopolistically competitive firm produces a quantity equal to a) q1. b) q2.…
A: Monopolistic competition is a market environment in which there are numerous independent customers…
Q: of 3 ZOOM 3. Draw a graph with an indifference curve and a budget line for two goods, movies…
A: Indifference curves are defiend as the locus of all the points with equal level of satisfaction.Some…
Q: QUESTION NO.13 Two relatively inexpensive alternatives are available to reduce potential earthquake…
A: Given: Interest rate=8% Study period=20 years
Q: 2. Given below is the market demand and supply for fish in a small town. Quantity demanded (Kilos…
A: Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity…
Q: Find the Nash equilibrium outcome for both treatments of the multi-stage bargaining game. In the…
A: Nash equilibrium is a concept in game theory that states that the best outcome of a game is one in…
Q: Include explanations what are the difference between induced and indirect economic impact? 2.)…
A: 1. Difference between induced and indirect economic impact: (i) Induced impacts often indicate…
Q: QUESTION 7 Which of the following pictures best describes the impact on the labor market of an…
A: Unemployment insurance benefits that are more generous improve the functioning of the labour market…
Q: 4 points Marginal Cost to Eliminate (Dollars) First Unit Second Unit Third Unit Fourth Unit Firm A…
A: The given table show the marginal external costs(MEC) for each of four firms (A,B,C and D) to…
Q: Which of the followiing is true in a perfectly competitive market? Select one: Oa A large number of…
A: There are different types of markets and they are classified ok the basis of their characteristics…
Q: Solve it correctly
A: Cost is the expenditure that is incurred in the production of goods and services in the economy. It…
Q: Problem B: The Production Model Consider the production model that we have seen in class with a…
A: Given production function Y=K14L34K=40L=50
Q: f you were a foreign investor, would you want to invest in a consumer electronics company in Japan?…
A: Investing is the process of putting money aside today in exchange for a future return. The most…
Q: The following graph shows the budget constraint for a household who has to choose between…
A: Given graph
Q: Mary's preferences over X and Y correspond to the following utility function: U(X,Y) = XY³. Suppose…
A: Consumer will maximise its utility at a point where marginal rate of substitution is equal to price…
Q: Time it takes to produce one car Time it takes (hours) to produce one Laptop (hours) Canada 2,000 4…
A: A country produces and exports goods in which it has a comparative advantage in producing that good.…
Q: Metal is used to produce plows and nothing more. When necessary, use 2013 as the base year. The…
A: INFLATION" it is the rate of increase in price over a given period of time".
Q: Assess what you think will be the turbulence-causing factors during the next 5 years in the…
A: Businesses that provide medical services, manufacture medical equipment or drugs, provide medical…
Q: how are aggregate output and the real interest rate determined in competitive equilibrium?
A: Answer- competitive equilibrium is a situation where maintained balanced without any external…
Q: Need now please
A: The answer is - e) None of the answers are right.
Q: The profit-maximizing principle is In the case that the profit-maximizing point is in between two…
A: At equilibrium the price is determined when marginal revenue curve is equal to the marginal cost…
Q: In each of the following markets find the market equilibrium. Calculate consumer surplus, producer…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question (question 9…
Q: A country has a rate of growth (g) of 0.75 %, a debt-to-income of 94% and a primary deficit of 0.9%…
A: The percentage change within the value of all products and services produced in a very country over…
Q: A firm's marginal resource cost curve is O horizontal only if the firm is a price taker in the…
A: The marginal resource cost curve is used to explain the addition cost incurred in employing one more…
Q: Janice really likes potatoes. Potatoes cost $1.00 per pound, and she has $5.00 that she could…
A: The answer for both these parts are as follows:-
Q: It is not possible for a country to experience A. economic growth and economic development…
A: Economic development usually takes precedence over economic expansion. Economic growth refers to the…
Step by step
Solved in 2 steps
- Marie has a weekly budget of $2400, which she likes to spend on magazines and pies. If the price of one magazine is $40, what is the maximum number of magazines she can buy in a week? If the price of a pie is $120, what is the maximum number of pies she can buy in a week? Compute and show Marie’s budget schedule for pies and magazines. Draw Marie’s budget line with pies on the horizontal axis and magazines on the vertical axis.The graph shows two budget lines and six consumption points (A, B, C, D, E, and F) for Pepsi and Dr Pepper. Note that budget line 1 is before the increase in Fred's income, whereas budget line 2 is after the increase in Fred's income. Assume that the consumer, Fred, attempts to maximize his utility and exhausts his budget on the two goods. If Fred's income increases, the movement from point A to point E is consistent with Pepsi being a normal good and Dr Pepper being an inferior good. If Fred's income increases, the movement from point A to point B is consistent with Dr Pepper being a normal good and Pepsi being an inferior good.1. An individual's budget Suppose Darnell has a weekly budget of $32 to spend on ranch dressing and spinach. Ranch dressing is priced at $4 per bottle, and spinach is priced at $2 per container. If Darnell spends his entire $32 on ranch dressing, he can buy 16 containers of spinach. 8 bottles of ranch dressing. If he spends his entire $32 on spinach, he can buy Use the blue line (circle symbol) to plot Darnell's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of ranch dressing and spinach that are affordable for Darnell. Finally, place the black point (plus symbol) on the point on Darnell's budget constraint that corresponds to a scenario in which Darnell spends $16 on each good. Note: Dashed drop lines will automatically extend to both axes.
- Suppose that with a budget of $100, Deborah spends $60 on sushi and $40 on bagels when sushi costs $2 per piece and bagels cost $2 per bagel. But then, after the price of bagels falls to $1 per bagel, she spends $50 on sushi and $50 on bagels. How many pieces of sushi and how many bagels did Deborah consume before the price change? At the new prices, how much money would it have cost Deborah to buy those same quantities (the ones that she consumed before the price change)? Given that it used to take Deborah’s entire $100 to buy those quantities, how big is the income effect caused by the reduction in the price of bagels?Alex distributes his monthly income of $600 between two goods, movies and food. By spending his entire income on movies, he can enjoy a maximum of 20 movies. On the other hand, by spending his entire income on food he can consume a total of 60 units of food. Assume that food consumption is measured along the horizontal axis and the consumption of movies is measured on the vertical axis. Calculate the slope of Alex's budget line when the price of food increases to $20 while the price of movie remains unchanged. -2/3 - 1.5 -2 -3/4Currently, Paula is maximizing utility by purchasing 5 TV dinners (T) and 4 Lean Cuisine meals (L) each week. Graph Paula’s initial utility-maximizing choice. Suppose that the price of T rises by $1 and the price of L falls by $1.25. Can Paula still afford to buy her initial consumption choices? What do you know about her new budget constraint? Use your graph to show why Paula will choose to consume more L and less T given her new budget constraint. How do you know that her utility will increase? Some economists define the ‘‘substitution effect’’ of a price change to be the kind of change shown in part c. That is, the effect represents the change in consumption when the budget constraint rotates about the initial consumption bundle. Precisely how does this notion of a substitution effect differ from the one defined in the text? If the substitution effect were defined as in parts, how would you define ‘‘the income effect’’ to get a complete analysis of how a person responds to a…
- Now suppose Henry has $900 to spend rather than $450. How will this change affect Henry's budget line? It shifts outward in a parallel fashion. O It pivots, moving leftward along the horizontal axis and outward along the vertical axis. O It shifts inward in a parallel fashion O It does not move.Currently, Paula is maximizing utility by purchasing five TV dinners (T) and four LeanCuisine Meals (L) each week. Suppose both T and L cost $5 each.a. Graph Paula’s initial utility-maximizing choice.b. Suppose the price of T falls by $1 and the price of L rises by $1.25. Can Paula stillafford to buy her initial consumption choices? What do you know about her new budgetconstraint?c. Make a new graph to show why Paula will choose to consume more T and less Lgiven her new budget constraint to maximize utility. Is her utility increased, decreased,or unchanged given the price change? [Hint: try to make the graph as big as possible tosee how the utility is tangent/intersects with the lines more easily] d. In part (b), suppose another scenario where the price of T rises by $1 and the priceof L falls by $1.25. Is Paula’s utility increased, decreased, or unchanged given the pricechange?PLEASE HELP ME ANSWER IT AS FAST AS YOU CAN Hanan consumes two fruits: bananas (B) and apples (A). She has decided that her monthly budget for fruit will be 25 KD. Suppose that one banana costs 0.25 KD (250 Fils), while one apple costs 0.10 KD (100 Fils). a. State Hanan’s budget constraint. b. Draw a graph of Hanan’s budget line. Place the number of units of bananas on the vertical axis and the number of units of apples on the horizontal axis. c. Show graphically how Hanan’s budget line changes under the following scenarios:i. If the price of apples increases to 0.20 KD (200 Fils).ii. If the price of bananas decreases to 0.05 KD (50 Fils). iii. If her income increases to 50 KD.iv. If Hanan decides to cut her monthly budget for fruit in half and notices that bananas and apples are on sale for half price.
- Jamani earns a weekly income of $6000. Suppose he wishes to spend this income on two goods, games and DVDs only. A game costs $200 while a DVDcosts $600. Draw Jamani’s budget line. Putting games on the Y axis. ii. Suppose his income increases to $9000 per week, illustrate what happens to her budget line.iii. Suppose the price of games increase to $600, while his income and the price of DVDs is unchanged from part (i).Ryan has $30 per week to spend on snacks. She is a bit health conscious so she prefers to buy either alkaline water which is $5 per liter or protein bars which cost $3 per bar A. Use the graph to plot her budget line given the info above B. The price of protein bars increases to $4. Draw her new budget line(assume she can purchase fractions of water bottles or protein bars. C. Ryan’s weekly budget decreases to $24 while the price of protein bars stays at $4 and the price of water bottles stays at $5. Draw her new budget line (assume she can purchase fractions of water bottles or protein bars). Suppose that initially, bread is $2 per loaf,and cake is $2 per slice. Marie Antoinettehas $18 to spend on these items each week.At this income and those prices, Marie consumes 5 loaves of bread and 4 slices of cake.Then, the price of bread DECREASES to$1 per loaf. (The price of cake is still $2.)IF Marie’s budget had also fallen to $13so that she could still just afford her original bundle, she WOULD choose to spendthose $13 on 7 loaves of bread and 3 slicesof cake.But since Marie still has her original $18budget, she actually chooses to buy 4loaves of bread and 7 slices of cake afterthe price change.When the price of bread fell from $2 to $1,what was the substitution effect on Marie’sdemand for bread?