As described in Exercise 8.1, Lucy wants carpets and paintings for here office. Her company has given her a budget of $7200 for this purpose. Persian carpets of the size that she wants can be purchased for $900 each and paintings from a local Native American artist cost $400 each.   Using Excel's charting tool, draw Lucy's budget constraint if her budget is $5000. Use 0, 1, 2, 3, and 5 carpets as possible quantities. Put carpets on the horizontal axis and paintings on the vertical axis

Q: Question 1 Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per…

A: M  spends all her income on  food and clothing. M=$2,000PF=$5PC=$20

Q: Define Economic utility

A: Economics studies the behavior of consumers and producers and tries to understand the factors which…

Q: Alex has a budget of $100 a month for movie tickets and restaurant meals.  A movie ticket will cost…

A: Budget constraint formula:- PxX+PyY=I where; Px= Price of good x X= Quantity of good x Py= Price of…

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A: Indifference Curve (IC) is the locus of various combination of two goods which give equal…

Q: 10) A consumption points inside the budget line A) is unaffordable. B) shows that the consumer…

A: A budget line shows all the possible combinations of two goods that a consumer can buy with the…

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Q: Suppose you have $48 to spend on the two items in the graph below. Q books 4 A 1 2 6 8 Q…

A: If movie costs $8 line B represents my budget constraint. If books costs $12 line B represents my…

Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…

A: Utility is maximised at a point where marginal utility per dollar for all the goods are equal.

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A: Utility refers to the total amount of satisfaction that derived from the consumption of goods and…

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A: Answer - Marginal Utility :- It is utility which a consumer will get by consuming one extra unit of…

Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice, O, $1 each. Her income is…

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Q: You run a foundation that provides help to families during the holiday season. You distribute both…

A: Budget line shows various combination of 2 goods that a person can buy, given the prices of the…

Q: Suppose the marginal utility for a $5 submarine sandwich is 100. In addition, the marginal utility…

A: When an individual has two goods to consume, his utility Maximizing situation is when he is getting…

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

Q: Price of Can of Beer = $0.50 Total Utility Price of Slice of Pizza = $1.00 Slices per Week Total…

A: According to the question, the price of beer is $0.5 and pizza is $1.

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: (g) The opportunity cost of getting one piece of clothing would be  400100=4 units of food, which…

Q: If BC2 is the relevant budget constraint, then the consumer will purchase bundle

A: Budget constraint represents all the combination of goods which the consumer can purchase with his…

Q: Total Utility Marginal Utility Slices of Pizza 0. 20 50 1. 20 3. 10 In the above table, the total…

A: Total utility(TU) refers to the total amount(A) of satisfaction received from the consumption(C) of…

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Q: Suppose the price of a candy bar is $1.25, the price of a bag of chips is $1.75, and the budget is…

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A: Total utility is the whole sense of fulfilment or happiness a consumer has after using a particular…

Q: "Ella consumes positive quantities of both jam and juice. The price of jam is 5 cents per unit and…

A: Price of jam = 5 cents  Price of juice = 10 cents  Marginal utility of jam = 10 Marginal utility of…

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A: Budget Governments, organisations, and individuals use budgets to estimate revenue and expenses for…

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Q: Price of Can of Beer = $0.50 Cans per Week Price of Slice of Pizza = $1.00 Slices per Week %3D Total…

A: Budget Line 10.5 = 0.5B + P21 = B + 2P (By duviding 0.5) MU = Change in TU/Change in Q

Q: Units Consumed Total Utility Marginal Utility 0 0 — 10 93 9.3 20   10.7 30 298   40 392   50   8.8…

A: Answer: The formula to be used: MU=Change in total utility∆TUChange in units consumed∆C

Q: Discuss Budget line

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Q: Suppose now we want to minimize our expenditure while achieving a certain amount of utility. So say…

A:

Q: 8)  When Marginal Utility = 0, Total Utility is A) Maximum B) Constant C) Minimum D) None of the…

A: Total Utility:-  The overall amount of contentment achieved by a consumer as a result of consuming a…

Q: Suppose you are given RM500 each month to spend on meals and sports. Each meal will cost you RM5 and…

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A: 4)

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Q: Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500.…

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Q: 11)Which of the following describes what happens to a consumer's budget line if that consumer's…

A: Budget line: A budget line is the graphical representation of all the possible combinations of two…

Q: (Dollars) (Bowls) (Slices) 40.00 20 40.00 4 10 40.00 8 Use the black line (plus symbols) to plot the…

A: Dollars Point Bowls Slices 40 A 0 20 40 B 4 10 40 C 8 0

Q: Complete the table. Use your results to answer the following questions. Units of product A Total…

A: Utilty is defined as the satisfaction which the consumer gets by consuming the homogeneous units of…

Q: Marie has a weekly budget of $24, which she likes to spend on magazines and pies. If the price of a…

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Q: What is meant by form utility?

A: Utility is an economic term which refers to satisfaction.

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Q: This week you have gone to two parties. Assume the total utility you gained from these parties is…

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…

Q: The price of DVDs​ (D) is $20.00 and the price of CDs​ (C) is $10.00. Phillip has a budget of…

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Q: Suppose Amanda spends all of her income of $1,000 on mascara (M) and chocolate (C) The prices per…

A: income $1,000 The prices per unit are PM = $5 and PC = $10.

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Q: Louis is trying to decide what combination of cups and plates to buy. His budget is $12. Plates cost…

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Q: Shannon is allergic to chocolate and refuse to eat it making the statement that the marginal utility…

A: Marginal utility is the extra utility received from consuming one additional unit of the good per…

Q: Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $5.00 and…

A: (Q) Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $5.00 and…

Q: Marie has a weekly budget of $2400, which she likes to spend on magazines and pies. If the price of…

A: Income=$2400 Price of Magazine= $40 Price of pie= $120

Q: Suppose Raymond decides to cut his monthly budget in half. Coincidentally, the next time he shops,…

A: *Answer:

Q: Linda loves buying shoes and going out to dance. 20- Her utility function for pairs of shoes, S, and…

A:

Q: Kali lives on mangoes and avocados, Pm = $5, Pa = $10, and her income is $200.Identify her budget…

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A:

Q: Amrita, a utility maximizing consumer, consumes only two normal goods, Breakfast Cereal and Bread…

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A: The consumption function shows the positive relationship between disposable income and consumption.…

Q: Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $5.00 and…

A: Budget = $20  Price of burger = $5 Price of pizza slice = $2