Homework Answers
According to the graph mentioned,
let blouses be x and skirts be y.
a) Now, Nikki spends all her income on 5 blouses. Hence,
5x = 150, or, x= 150/5= 30
Hence, price of blouses is $30 per unit.
b) Similarly, she spends all her income on 10 skirts. Hence,
10y = 150, or, y= 150/10= 15
Hence, price of skirts is $15 per unit.
c) B. No, the indifference curve going through this point is not on the tangent to Nikki's budget constraint; In order for achieving an optimal choice, the indifference curve needs to be tangent to the budget line.
Add Answer to:
In the following budget constraint- indifference curve graph, Nikki has $150 to spend on blouses and...
ON-E103-16466 > Assignments > Assignment 7 Assignment 7 2020 Spring E103 Microeconomics F2F (NC) (1) zach...
ON-E103-16466 > Assignments > Assignment 7 Assignment 7 2020 Spring E103 Microeconomics F2F (NC) (1) zach bank Homework: Assignment 7 Score: 0 of 2 pts End of Chapter A.7 7 of 19 (16 complete) HW Score: 80%, 24 of In the following budget constraint- indifference curve graph, Nikki has $180 to spend on blouses and skirts a. What is the price of a blouse? $ 36 What is the price of a skirt? $ 18 b. Is Nikki making the...
budget constraint
When the indifference curve is tangent to the budget constraint,a.indifference curves are likely to intersect.b.a consumer cannot be made better off without an increase in her income or a price decrease in one of the goods she consumes.c.the consumer is likely to be at a sub-optimal level of consumption.d.income is at its optimum for a consumer.
True, False, Uncertain or Not enough information: A given budget constraint has only one indifference curve...
True, False, Uncertain or Not enough information: A given budget constraint has only one indifference curve that is tangent for a specific set of prices. However, there may be numerous indifference curves that intersect the same budget constraint. Explain in terms of relative prices, opportunity costs and the marginal rate of substitution.
The graph shows Tom’s budget line and indifference curve for good x and y. The price...
The graph shows Tom’s budget line and indifference curve for good x and y. The price of good x is $40 . If he uses all of his income on good Y , then 20 units of y will be consumed. If all income is spent on good x then 4 units will be consumed. What is the marginal rate of substitution of good y for x at the point where the indifference curve is tangent to the budget line?
Maria enjoys eating bagels and scones. The following graph displays one of Maria's indifference curves (11),...
Maria enjoys eating bagels and scones. The following graph displays one of Maria's indifference curves (11), which shows her preference for bagels and scones each month. SCONES -- + -- -- 8 10 14 BAGELS Complete the following table by determining Maria's marginal rate of substitution (MRS) between the two points listed in each row. (Note: Although Che MRS is technically always negative, enter a positive number in the following table since it asks for the amount of scones per...
2. Identifying normal, inferior, and Giffen goods The green line BC, on the following graph represents...
2. Identifying normal, inferior, and Giffen goods The green line BC, on the following graph represents your initial budget constraint for good X and good Y, and point A represents the optimal consumption choice, given this choice set. Suppose the price of good X dropped by 50%. The compensated budget is parallel to BC2, representing the same tradeoff between good X and good Y, and it is tangent to the given indifference curve (U) at point B. On the following...
Cat only buys tomatoes (x) and cucumbers (y) and her preferences can be identified with U(x,x)=6x2y....
Cat only buys tomatoes (x) and cucumbers (y) and her preferences can be identified with U(x,x)=6x2y. a. What is Cat's marginal utility for tomatoes, and what is her marginal utility for cucumbers? How does Cat's utility change when she consumes more tomatoes? How does her utility change when she consumes more cucumbers? b. Find Cat’s marginal rate of substitution (tomatoes are on the x axis and cucumbers on the y axis). What is the slope of Cat's indifference curve that...
A) Suppose U = min[X, 3Y] and I=12, Px=1 and Py=5. Find X* and Y*. B) Draw an indifference curve and a normal linear budget constraint such that there is a tangency point (where MRS= price ratio) that...
A) Suppose U = min[X, 3Y] and I=12, Px=1 and Py=5. Find X* and Y*. B) Draw an indifference curve and a normal linear budget constraint such that there is a tangency point (where MRS= price ratio) that is not the optimal bundle. C) Suppose U=X∙Y5. Find X* and Y*. D) Suppose U = 5∙X + 2∙Y and I=12, Px=2 and Py=1. Find X* and Y*.
7) The picture below shows several indifference curves of a consumer and several budget lines: X2...
7) The picture below shows several indifference curves of a consumer and several budget lines: X2 1 2 3 4 5 6 7 8 9 10 11 12 Note that the lines passing through A, C, and E are parallel. Also the lines passing through B, D, and F are parallel. Move over at each bundle labeled with a letter, the budget line and indifference curve passing through that bundle are tangent. The consumption levels at each of the labeled...
Suppose a consumer has budget of $120 per week to spend on food. Consumer can choose...
Suppose a consumer has budget of $120 per week to spend on food. Consumer can choose to eat at restaurants (R), in which case he spends about $20 per meal (P $20), or spend his money on All-Other-Food (PAOP $1) 2. a. Ilustrate consumer's budget line. Plot R on the horizontal axis. b. If consumer's utility function is U-R AOF, what will be his optimal bundle? What would be the value of his utility at optimal bundle? How much money...
ON-E103-16466 > Assignments > Assignment 7 Assignment 7 2020 Spring E103 Microeconomics F2F (NC) (1) zach bank Homework: Assignment 7 Score: 0 of 2 pts End of Chapter A.7 7 of 19 (16 complete) HW Score: 80%, 24 of In the following budget constraint- indifference curve graph, Nikki has $180 to spend on blouses and skirts a. What is the price of a blouse? $ 36 What is the price of a skirt? $ 18 b. Is Nikki making the...
Maria enjoys eating bagels and scones. The following graph displays one of Maria's indifference curves (11), which shows her preference for bagels and scones each month. SCONES -- + -- -- 8 10 14 BAGELS Complete the following table by determining Maria's marginal rate of substitution (MRS) between the two points listed in each row. (Note: Although Che MRS is technically always negative, enter a positive number in the following table since it asks for the amount of scones per...
2. Identifying normal, inferior, and Giffen goods The green line BC, on the following graph represents your initial budget constraint for good X and good Y, and point A represents the optimal consumption choice, given this choice set. Suppose the price of good X dropped by 50%. The compensated budget is parallel to BC2, representing the same tradeoff between good X and good Y, and it is tangent to the given indifference curve (U) at point B. On the following...
Cat only buys tomatoes (x) and cucumbers (y) and her preferences can be identified with U(x,x)=6x2y. a. What is Cat's marginal utility for tomatoes, and what is her marginal utility for cucumbers? How does Cat's utility change when she consumes more tomatoes? How does her utility change when she consumes more cucumbers? b. Find Cat’s marginal rate of substitution (tomatoes are on the x axis and cucumbers on the y axis). What is the slope of Cat's indifference curve that...
7) The picture below shows several indifference curves of a consumer and several budget lines: X2 1 2 3 4 5 6 7 8 9 10 11 12 Note that the lines passing through A, C, and E are parallel. Also the lines passing through B, D, and F are parallel. Move over at each bundle labeled with a letter, the budget line and indifference curve passing through that bundle are tangent. The consumption levels at each of the labeled...
Suppose a consumer has budget of $120 per week to spend on food. Consumer can choose to eat at restaurants (R), in which case he spends about $20 per meal (P $20), or spend his money on All-Other-Food (PAOP $1) 2. a. Ilustrate consumer's budget line. Plot R on the horizontal axis. b. If consumer's utility function is U-R AOF, what will be his optimal bundle? What would be the value of his utility at optimal bundle? How much money...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago