Joy goes bowling once and snow boarding three times a month when she has $60 to spend. A visit to the bowling alley costs $30, and a snow boarding ticket costs $10. Draw Joy's budget line. Label it. If the price of a snow boarding ticket falls to $6, describe how Joy's consumption possibilities change. Joy's consumption possibilities OA. increase or decrease, but it is not possible to predict without knowing if her income also changes OB. increase and if Joy spends all of her income on bowling, she can go bowling more often OC. decrease OD. increase and if Joy spends all her income on snow boarding, she can buy more snow boarding tickets 8- 7 6- 5- 4- 3- 2- 1- 0- Quantity (snow boarding outings per month) 0 2 3 Quantity (bowling outings per month) >>> Draw only the objects specified in the que

Joy goes bowling once and snow boarding three times a month when she has $60 to spend. A visit to the bowling alley costs $30, and a snow boarding ticket costs $10. Draw Joy's budget line. Label it. If the price of a snow boarding ticket falls to $6, describe how Joy's consumption possibilities change. Joy's consumption possibilities OA. increase or decrease, but it is not possible to predict without knowing if her income also changes OB. increase and if Joy spends all of her income on bowling, she can go bowling more often OC. decrease OD. increase and if Joy spends all her income on snow boarding, she can buy more snow boarding tickets 8- 7 6- 5- 4- 3- 2- 1- 0- Quantity (snow boarding outings per month) 0 2 3 Quantity (bowling outings per month) >>> Draw only the objects specified in the que

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

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.
Using examples, does an increase in income affect a consumer’s budget line? Does it impact their total utility?.
Suppose you have a budget of 30 to spend on two goods: pizzas and burgers. Each pizza is $5 while each burger is $10. Suppose you already purchased 6 pizzas. What is the maximum number of burgers that you can buy with the remaining funds in your budget?
b. A student has a monthly budget of $120 to spend on either beer, which cost $6 each, or sodas, which cost $4 each. i. Find out the largest number of beers and the largest number of sodas the student could afford to purchase in one month? ii. After buying 15 sodas, how many beers that the student could afford to purchase in one month? iii. Plot each of the bundles from parts A-C on a graph that measures Beers on the horizontal axis and sodas on the vertical; connect the dots. iv. Show what happens to the budget constraint if the price of sodas rises to = $5 per soda.
Wendy's bus ticket and sandwich budget is $20 a week. The pice of a bus ticket is $2 and the price of a sandwich is $5. How do Wendy's consumption possibilities change f. cther things remaining the same, (0 the price of a sandwich rises and () Wendy's income decreases? Other things rermaining the same, if the price of a sandwich ises, Wendy can aftord to buy Other things remaining the same, if Wendy's income decreases, her budget ine sandwiches if she spends all her income on sandwiches. OA. fewer, shifts inward and her consumption possibilities increase OB. fewer, shifts inward and her consumption posstilties decreace OC mare; shits outward and her consumption possibilties decrease OD. fewor, shits outward and her consumption possiblities increase
How can one's choice of purchases/consumption be infuenced by utility or marginal utility?
Amy has $12 to spend on coffee and soda. The price of coffee is $2 a cup, and soda is $1 a can. The graph below shows her budget line. 1. Can Amy buy 7 cans of soda and 2 cups of coffee a week? 2. Can she buy 7 cups of coffee and 2 cans of soda a week? 3.What happens to the new budget line if the price of soda increases to $3 a can.
EXERCISE 3 If Joe decides to allocate his entire weekly allowance between energy drinks and coffee, he could afford 9 energy drinks and 3 cups of coffee, or 6 cups of coffee and 2 energy drinks. Suppose a cup of coffee costs £2.80. Calculate the price of an energy drink and Joe’s weekly allowance. Write down Joe’s budget equation and draw the corresponding budget line. Mark the two consumption bundles mentioned above. In your graph, clearly label the axes, the budget line, and calculate the coordinates of the points of intersection of the budget line with each axis. Interpret each of those points. Discuss how Joe’s budget set would change if his allowance was reduced by £5.20 a week. Show the relevant changes graphically. How should the price of coffee change so that Joe could still afford to buy 6 cups of coffee and 2 energy drinks? Discuss how Joe’s budget constraint would change if the government subsidised consumption of coffee by £0.50 per cup of coffee.
1. An individual's budget Suppose Musashi has a weekly budget of $24 to spend on juice and yogurt. Juice is priced at $2 per gallon, and yogurt is priced at $6 per container. If Musashi spends his entire $24 on juice, he can buy gallons of juice. If he spends his entire $24 on yogurt, he can buy containers of yogurt. Use the blue line (circle symbol) to plot Musashi's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of juice and yogurt that are affordable for Musashi. Finally, place the black point (plus symbol) on the point on Musashi's budget constraint that corresponds to a scenario in which Musashi spends $12 on each good. Note: Dashed drop lines will automatically extend to both axes. 24 22 20 BC, ($24) 18 16 Affordable Region 14 12 $12 on Each 6. 4 BC, ($48) 4 6. 8 10 12 14 16 18 24 JUICE (Gallons) 22 20 10 2) YOGURT (Containers)
Suppose that a consumer has an income of $10 per period, and that he must spend it all on meat or potatoes. If meat is $2.00 per pound and potatoes are $2.00 per pound, draw the consumer's budget line on a graph. identify the quantity of meat and potatoes that would be consumed.
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.
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)