Write out the standard form of a budget constraint (meaning only with variables, no numbers). Then, write a budget constraint that represents the following situation and graph it (LABEL YOUR AXES, INTERCEPTS, AND SLOPE!!!!!) The price of apples is $2 per pound and the price of bananas is $3 per pound. You have $25 available to spend on apples and bananas combined.
Q: Consider the game below. How many best responses does Player 1 have to strategy L of Player 2?…
A: In game theory, the best response is the strategy (or strategies) which produces the most favourable…
Q: How much will a deposit of P1,000.00 be in 20 years at an interest of 6% compounded annually? A.…
A: Future value refers to an amount that will accrue over defined time with the given discounted rate…
Q: Using supply and demand diagrams, SHOW AND EXPLAIN the market of onions (red or white) based from…
A: Demand and supply are the cornerstones of microeconomics. Effective demand is just the total amount…
Q: Section A: Multiple Choice Questions Q5. If the exchange rate rises: a. Exports will rise and…
A: Exchange rates are characterized as the cost of one country's currency comparable to another…
Q: Determine the ordinary simple interest on P700.00 for 8 months and 15 days if the rate of interest…
A: Given, Principal amount = 700 Total days = 8 ×30+15 = 255 ( t = 255/360) Rate of…
Q: Suppose a $2,000,000 loss occurs randomly with a 1/200 chance. What is the actuarially fair premium?…
A: A premium that is established based on predicted losses and the likelihood that those losses will…
Q: Suppose a market with two customers. Their demands are specified by: Q1 = 100 - 2P and Q2 = 150 -…
A: While the equilibrium price is the single cost where the intentions of both consumers and…
Q: Complete # 3 a & b of Problems at the end of the chapter p. 284/680=666. Describe the…
A: Introduction The total amount that the government has borrowed to cover its development budget,…
Q: If X grows at a rate of 9% a year, and Y grows at a rate of 14 percent per year, what is the growth…
A: Given information: (1) There are two variables, i.e., X and Y. X grows at a rate of 9% a year.…
Q: 12. If indifference curves cross, then: (a) the assumption of a diminishing marginal rate of…
A: An indifference curve represents the various combinations of two goods that a consumer considers…
Q: In today world price discrimination is commonly used by various companies to enhance their profit.…
A: Price discrimination can be defined as a microeconomic pricing strategy in which goods of an almost…
Q: Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market…
A: a monopoly market refers to a market structure in which there is only one supplier or producer of a…
Q: Suppose MRSx,y = MUx/MUy = 0.1 (a) If the consumer substitutes 10 units of X for one unit of Y, then…
A: The marginal rate of substitution (MRS) is the rate at which a consumer is willing to trade off one…
Q: Big City Java is a local coffee bar. Using Excel, the manager of Big City Java estimates the weekly…
A: Demand function shows the functional relationship between quantity demanded of a commodity and its…
Q: Suppose a country's real GDP doubles in approximately 55 years. What was its constant annual growth…
A: The annual growth rate is a measure of the increase in a quantity (such as a country's GDP,…
Q: A small open economy with free capital mobility experiences a temporary adverse supply shock and the…
A: "Capital mobility" basically refers to the ease with which financial resources, such as money or…
Q: what will An increase (rightward shift) in the demand for a good will tend to cause
A: Introduction Demand can be defined as the amount of goods or services that a consumer is willing to…
Q: Consider an economy with production function given by Y = AK0:5L0:5 where A is the total factor…
A: Production function : Y = A K0.5L0.5 Where , A = 100 Optimal labor demand is at the point where…
Q: Consider the market for middle and aisle seats on airline flights. Aisle seats are more popular than…
A: When a product demand increases its demand curve shifts rightward shift and when a product demand…
Q: Describe the recent macroeconomic history and economic conditions for the Japanese Yen that…
A: Exchange market is a place where foreign exchange are traded. Through demand and supply exchange…
Q: true or false Technological developments are a fundamental driver of opportunity.
A: Technological developments can possibly set out new open doors and change existing businesses.…
Q: 1. A. For each of the following, state whether or not it is included in GDP. If it is, state the…
A: Gross Domestic Product (GDP) is a measure of the total value of goods and services produced within a…
Q: an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a…
A: Given that; Harold purchases the mortgage of $30,000 and buys the ticket for $290 for 50 years. The…
Q: Suppose Mai estimates two demand curves, one for data collected over a two-week period for her…
A: A strong statistical technique that enables you to look into the connection among two or more…
Q: Consider a model in which an individual lives only two periods. The individual has diminishing…
A: Richard Ian Equivalence: Ricardian equivalence is a theory of economics that was developed by David…
Q: Suppose this price index uses 2020 as the base year. In the last row of the table, calculate and…
A: A price index measures the change in price of basket of goods relative to the base year. i.e.,…
Q: 1. What does it mean when we say that the demand is unitary elastic? (a) A 1% change in price leads…
A: Elasticity measure the responsiveness of change in quantity demanded to change in an economic factor
Q: Five years ago, a company experienced some extremely unusual events, including a major strike and a…
A: Given - Five years ago, a company experienced some extremely unusual events, including a major…
Q: Question 4 a. What are the gains to be derived from free trade? b. Illustrate, with the use of…
A: Trade is the process through which two or more parties exchange commodities, services, or capital.It…
Q: The firm's break even (zero profit) price and output combination is Price P₁ P₂ Py PA P1, D. P2, C…
A: Break Even Point: For a firm the breakeven point is the point at which it is neither earning profits…
Q: 1. Spending - Included in the U.S. GDP for 2020, or not included ? If so, under which…
A: Gross domestic product (GDP) is total market value of all finished goods and services produced…
Q: When the price of a cup of coffee increases 10 percent, the quantity of donuts demanded decreases by…
A: An elastic demand is one in which the change in quantity demanded because of a price change is…
Q: 17. Evaluate the truthfulness of the following statements: I. The Engel curve for a normal good is…
A: The Engel curve is a graphical representation that shows the relationship between the quantity of a…
Q: Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the…
A: Price index is a measure the change in cost of buying a goods basket relative to base year. Price…
Q: The following table gives the average nominal interest rates on six-month Treasury bills spanning…
A: The relationship between the nominal interest rate and the real interest rate can be expressed by…
Q: K Using the currency cross rate table, convert US$298.00 to Canadian dollars. Canadian U.S. Euro…
A: An exchange rate refers to a relative price of one currency determined to be in the terms of another…
Q: If there is an increase in supply for a product, how will market equilibrium be restored? As the…
A: The market equilibrium will be where demand curve and supply curve intersect each other. At the…
Q: Tom's utility on two goods, x and y, is presented as below. utility = U(x, y) = √xy ➡) If x costs $1…
A: Utility maximization and expenditure minimization are two fundamental concepts in microeconomics…
Q: In the case below, rationalize government action based on welfare economics. The Peranti Siswa…
A: A subfield of economics known as "welfare economics" is concerned with the welfare of individuals or…
Q: Because there isn't one single measure of inflation, the government and researchers use a variety of…
A: GDP and CPI: In economics, GDP in full form is Gross Domestic Product and measures the value of…
Q: A television set can be bought by 12 monthly payments of P800.00. Money worth to the appliance store…
A: Compounding is the process of computing interest on both the initial principal amount and any…
Q: Suppose Flo's demand for coffee per day is P = 10 - 2.14*Q and Terra's demand for coffee is P = 6 -…
A:
Q: “In what way does an understanding of the shifts in the PPC help businesses/countries make…
A: Introduction Production Possibility Curve (PPC) is an economic model that illustrates the trade-offs…
Q: Mo True increase production from 8 to 9 fire engines because the True or False: If alternatively…
A: A perfectly competitive market is a theoretical market body where all companies offer homogeneous…
Q: Suppose that Shen, an excellent high school basketball player, is being recruited by Duke University…
A: Introduction Consumer surplus is the gap between what consumers are willing to spend and what they…
Q: Two processes can be used for producing a polymer that reduces friction loss in engines. Process T…
A: PW=C0 + C1(1+r)+C2(1+r)2+.........C2(1+r)n
Q: 1. Kelly spends most of her time taking care of her home and children, but she helps in her…
A: Disclaimer Since you have asked multiple questions, we will solve the first one for you. If you want…
Q: A regional municipality is studying a water supply plan for its tri-city and surrounding area to the…
A: Given The present year is the year of 2025 i.e end of 2025 or the beginning of 2026. Construction…
Q: Bottom of Bracket $0 $49,692 $99,384 173,922 Top of Bracket $49,692 $99,384 $173,922 Rest of Income…
A: Marginal tax rate shows the tax rate fall under the tax bracket given in the table. Average tax…
Q: How would scenarios A and B affect the opportunity cost of going to college versus going to work…
A: Introduction Recession and economic booms are two parts of the economic cycle that are experienced…
Step by step
Solved in 4 steps with 1 images
- Consider a graph with paper on the x-axis and pencils on the y-axis. If the price of pencils increases, then (select all that apply): Check All That Apply the budget constraint will become steeper (the absolute value of the slope will increase).the budget constraint will become steeper (the absolute value of the slope will increase). the budget constraint will become flatter (the absolute value of the slope will decrease). the budget constraint will become flatter (the absolute value of the slope will decrease). the slope of the budget constraint will not change.the slope of the budget constraint will not change. the x-intercept will increase.the x-intercept will increase. the x-intercept will decrease.the x-intercept will decrease. the x-intercept will not change.the x-intercept will not change. the y-intercept will increase.the y-intercept will increase. the y-intercept will decrease.the y-intercept will decrease. the y-intercept will not…Consider a graph with paper on the x-axis and pencils on the y-axis. If the price of paper decreases, then (select all that apply): Check All That Apply the budget constraint will become steeper (the absolute value of the slope will increase).the budget constraint will become steeper (the absolute value of the slope will increase). the budget constraint will become flatter (the absolute value of the slope will decrease). the budget constraint will become flatter (the absolute value of the slope will decrease). the slope of the budget constraint will not change.the slope of the budget constraint will not change. the x-intercept will increase.the x-intercept will increase. the x-intercept will decrease.the x-intercept will decrease. the x-intercept will not change.the x-intercept will not change. the y-intercept will increase.the y-intercept will increase. the y-intercept will decrease.the y-intercept will decrease. the y-intercept will not…Suppose you have $100 to spend on Skittles and M&Ms. The price of Skittles is $5.00 and the price of M&Msis $1.00.(a) Write the budget constraint and draw the budget constraint on a graph that has M&Ms on the verticalaxis. (b) Assuming you spend all of your money on skittles and M&Ms. If you bought 10 M&Ms how manySkittles did you purchase? (c) Suppose the price of skittles increases from $5.00 to $6.00. Rewrite the budget constrain and draw thenew budget line, including and indicating intercepts and the slopes. (d) Suppose the price of Skittles drops from $5.00 to $1.00. You are limited to only a maximum of 75skittles. Draw this new budget constraint on the same graph from your answers in part (a) and (c).
- 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.Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. What is the expression for Raymond’s budget constraint? Draw a graph of Raymond’s budget line (meatloaf on the y axis). Show how Raymond’s budget line changes if the price of pineapples increases to $370. Suppose Raymond decides to cut his monthly budget in half. Coincidentally, the next time he shops, he learns that meatloaves and pineapples are on sale for half price. Show what happens to Raymond’s budget line?Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150.a. What is the expression for Raymond’s budget constraint? b. Draw a graph of Raymond’s budget line (meatloaf on the y axis). c. Show how Raymond’s budget line changes if the price of pineapples increases to $370 d. Suppose Raymond decides to cut his monthly budget in half.Coincidentally, the next time he shops, he learns that meatloaves and pineapples are on sale for half price. Show what happens to Raymond’s budget line?
- Use this information to answer the following 4 questions: Marie has a weekly budget of $24,which she likes to spend on magazines and pies.24. If the price of a magazine is $4 each, what is the maximum number of magazines she couldbuy in a week?25. If the price of a pie is $12, what is the maximum number of pies she could buy in a week?26. Draw Marie’s budget constraint with pies on the horizontal axis and magazines on thevertical axis. What is the slope of the budget constraint?27. What is Marie’s opportunity cost of purchasing a pie? I need help with number 26 and 27.Can you please assist? Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. a. What is the expression for Raymond’s budget constraint? b. Draw a graph of Raymond’s budget line (meatloaf on the y axis).Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. i. What is the expression for Raymond’s budget constraint? ii. Draw a graph of Raymond’s budget line (meatloaf on the y axis). iii. Show how Raymond’s budget line changes if the price of pineapples increases to $370. iv. Suppose Raymond decides to cut his monthly budget in half. Coincidentally, the next time he shops, he learns that meatloaves and pineapples are on sale for half price. Show what happens to Raymond’s budget line?
- 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.Use this information to answer the following 4 questions: Marie has a weekly budget of $24, which she likes to spend on magazines and pies. If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week?If the price of a pie is $12, what is the maximum number of pies she could buy in a week?Draw Marie’s budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint?What is Marie’s opportunity cost of purchasing a pie?Raymond consumes meatloaves and pineapples. He has decided that hismonthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. i. Draw a graph of Raymond’s budget line (meatloaf on the y axis). ii. Show how Raymond’s budget line changes if the price of pineapplesincreases to $370.