Abbie can buy books or toys for her grandson. Here are three possible bundles that she can afford. Bundle A B с Quantity of Books 10 5 0 Quantity of Toys 0 4 8 Draw the budget set for Abbie. 1.) Using the triangle drawing tool, draw Abbie's budget set. Label the triangle "Budget set. Carefully follow the instructions above and only draw the required object. 12- 10- 1 Quantity of books 8 Quantity of toys 10 12 2

Abbie can buy books or toys for her grandson. Here are three possible bundles that she can afford. Bundle A B с Quantity of Books 10 5 0 Quantity of Toys 0 4 8 Draw the budget set for Abbie. 1.) Using the triangle drawing tool, draw Abbie's budget set. Label the triangle "Budget set. Carefully follow the instructions above and only draw the required object. 12- 10- 1 Quantity of books 8 Quantity of toys 10 12 2

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 9RQ: Explain why individuals make Choices that are directly on the budget constraint, rather than inside...

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ceriuppose that Isaiah has a weekly fixed budget and spends it all on haircuts and ice cream. At his current combination arof consumption, the marginal utility of the last dollar spent on haircuts is greater than the marginal utility of the last dollar spent on ice cream. Has Isaiah maximized his utility? A C E Yes, because changing his current consumption combination will reduce his total utility B No, because he can increase his total utility by purchasing more haircuts and D fewer ice creams Yes, because he has purchased 2 goods in proportion so that he can get- the maximum utility from each Yes, because he purchased the maximum possible with a limited budget No, because he can increase his total utility by purchasing fewer haircuts and more ice creams
To make sure he has enough energy for the teaching, Ernie spares $60 every week tospend on Blue Bull and Gigantic energy drinks. A can of Blue Bull costs $2, and a canof Gigantic costs $3. Assume that fractions of a can are allowed.(a) Draw Ernie’s budget line, measuring Blue Bull on the horizontal axis and Giganticon the vertical axis.(b) How many cans of Gigantic can Ernie afford if he buys 15 cans of Blue Bull?(c) What is the maximum number of cans of Blue Bull Ernie can afford?(d) What is the slope of the budget line? Be sure to include the sign. Explain in wordswhat this slope measures.(e) Denote the number of cans of Blue Bull by qb and that of Gigantic by qg. Writedown an equation capturing Ernie’s budget constraint. How would the equation fora budget line be different?
Drinking five glasses of water consecutively declinesyour utility, why?
NIVERSITY DURAI Consider the following data describing the change in Nora's utility when she consumes various levels of Nuts and chocolate per week, the price per portion for the considered goods are respectively AED 20 and AED10. Nora has a budget equal to 160 per day to spend on her snack. Q Nuts Total UtilityQ Chocolate Total Utility ChocolateMU Nuts MU ChocolateMU/ AEDMU/AED MRS Chocolate Nuts Nuts 40 1 28 72 52 100 3. 72 4 124 88 144 5. 102 160 6. 114 7 172 122 1. Complete the table above by calculating the marginal utility, the marginal utility per dollar spent and marginal rate of substitution for each good. 2. Identify the potential set of equilibrium points Where MUI/P1=MU2/P2 Nuts Chocolate Income 2. 2. 6.
If we have money, we buy goods and services to satisfy our needs. In economics, thesatisfaction that we get from the consumption of goods and services is called utility. Usea utility graph to explain what happen to the utility when you keep on increasing thenumber of units consumed. Also explain what happens to the utility when you keep onincreasing the number of units consumed. Also explain what happens to the additionalutility (i.e. additional satisfaction) when you increase your consumption by one unit
Question 3 Quantity Total Utility Marginal Utility 150 320 3. 450 4 520 550 6. 550 430 8 300 The above table shows Kenzi's Total Utility for Enfamil. A tub of Enfamil costs $4,000. Required: (a) Copy and complete the above table. (b) If Kenzie has an income of $80,000 anu she wishes to add cereal to her consumption What is the scope of the budget line if a tin of cereal costs $400. Draw the budget line to explain your calculations. (e) Based on the graph below what is consumer surplus for Enfamil if buyers are WTP $3,000 per tin? Enfamil Demand Curve 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 Quantity 5.
DmISIIng Margifal Otmty n. TOTAL AND MARGINAL UTILITY Reset E UTILITY CALCULATIONS Total Utility Quantity Consumed Total Marginal Utility 70 Utility 60 50 22 40 1 22 30 18 20 40 10 14 2 3 4 54 Quantity Consumed 10 Marginal Utility 4 64 20 6. 10 70 3. 6. -10 6. 72 -20 -2 7 70 Quantity Consumed Quantity Consumed -6 8. 64 8 Prev 1 of 3 Score answer > ...
Mega Partner is selling two products Marker(m) and Eraser(e) and their budget is given with thefollowing equation: 15Qe+ 30Qm= 3000. Now answer the following questions. I. Draw the budget line for Mega PartnerII. What would be the highest amount spend on Marker with the existing budgetIII. If Total budget increases to 4500 what would be the new budget line (use diagram)IV. If Price of the Marker becomes 15, how this changes the existing budget line keeping allthe values remain same.
How does household made choices based on budget or their utility satisfaction? Justfiy
a. Fill in the third column showing the marginal utility he gets from each additional scoop. Use a negative sign if appropriate. Quantity of Ice Marginal Utility of Total Utility Cream (scoops) Last Scoop Eaten 1 12 12 2 19 23 4 23 20
Explain why individuals make Choices that are directly on the budget constraint, rather than inside the budget constraint DI outside it.
Is it possible for total utility to increase while marginal utility diminishes? Explain.