Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 7.A, Problem 1ADQ
Subpart (a):
To determine
The information embodied in a budget line.
Subpart (b):
To determine
The information embodied in a budget line.
Subpart (c):
To determine
The information embodied in a budget line.
Subpart (d):
To determine
The information embodied in a budget line.
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3. Suppose 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. Candy bars cost $0.75 each while bags of
peanuts cost $1.50 each. LO1.5
a. Construct a table showing the alternative combinations
of the two products that are available.
b. Plot the data in your table as a budget line in a graph.
What is the slope of the budget line? What is the oppor-
tunity cost of one more candy bar? Of one more bag of
Principles of Economics 1 | S1 21/22
Time left 0:5)
When the price of one good increases and the price of the other good and income are held constant, the budget line
Select one:
shifts parallel to the original budget line so that the new budget line is farther from the origin
O b. shifts parallel to the original budget line so that the new budget line is closer to the origin
rotates so that the intercept is farther from the origin on the axis representing the good that has experienced
an increase in price
O a.
O c.
O d. rotates so that the intercept is closer to the origin on the axis representing the good that has experienced an
increase in price
Next page
Louis is trying to decide what combination of cups and plates to buy. His
budget is $12. Plates cost $4 each and cups cost $2 each. The numbers in
the table represent total utility. Given his budget, which combination will
maximize total utility? number of plates and cups.
Quantity Plates Utility from Plates
1
33
2
3
4
LO
5
6
64
93
103
112
123
Quantity Cups Utility from Cups
1
15
2
3
4
5
6
27
42
54
65
75
Chapter 7 Solutions
Economics (Irwin Economics)
Ch. 7.1 - Prob. 1QQCh. 7.1 - Prob. 2QQCh. 7.1 - Prob. 3QQCh. 7.1 - Prob. 4QQCh. 7.A - Prob. 1ADQCh. 7.A - Prob. 2ADQCh. 7.A - Prob. 3ADQCh. 7.A - Prob. 1ARQCh. 7.A - Prob. 2ARQCh. 7.A - Prob. 1AP
Ch. 7.A - Prob. 2APCh. 7.A - Prob. 3APCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7P
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