Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. 9. Consider the following discreet choice consumer problem. To be a hipster you have to wear flan-nel shirts and have tattoos. You must have at least one of each and a total of five of either thingcombined (for example, two flannel shirts and three tattoos would qualify you as hipster. Tattooscost $200 and shirts cost $25 each.a. Draw the consumption set for hipsters. That is, show all allocations that allow a person toachieve hipsterhood. Since this is unbounded from above, only draw the allocations that haveten or fewer tattoos or shirts.b. Will Doolittle is a trustafarian who has decided he wants to be a hipster. His parents havegiven him $500. Draw his feasible set. Can Will be a hipster?c. Leah Tarde is not as fortunate as Will. She has to work for a living has saved $187.45 inhopes of becoming a hipster. Draw her feasible set. Can Leah be a hipster?

To be a hipster there are two requirements = Shirts & TattoosMinimum of 1 is required from each…

Consider the following discreet choice consumer problem. To be a hipster you have to wear flan- nel shirts and have tattoos. You must have at least one of each and a total of five of either thing combined (for example, two flannel shirts and three tattoos would qualify you as hipster. Tattoos cost $200 and shirts cost $ 25 each.

Consider the following discreet choice consumer problem. To be a hipster you have to wear flan- nel shirts and have tattoos. You must have at least one of each and a total of five of either thing combined (for example, two flannel shirts and three tattoos would qualify you as hipster. Tattoos cost $200 and shirts cost $ 25 each.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...

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Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.
As a college student you work at a part-time job, but your parents also send you a monthly allowance. Suppose one month your parents forgot to send the check. Show graphically how your budget constraint is affected. Assuming you only buy normal goods, what would happen to your purchases of goods?
. Matilda is downloading music and videos from an online site. She is currently buying three music downloads that cost $3 each and two video downloads that also cost $3 each. The table below indicates what she reports as the marginal utility of the last music download and of the last video download in this combination of purchases. Quantity Price per Download MU per download Music downloads 3 $3 60 Video downloads 2 $3 45 As an assignment for her Microeconomics course, Matilda used the marginal utilities that she gave to her 3rd music download and her 2nd video download to complete the Experiment Tally Sheet below. Her available budget was $19.00. Downloads of mu (score) from 1 to 100 Price of each $3.00 Money spent on Downloads of mu (score) from 1 to 100 Price of each $3.00 Money spent on Total Money Total Budget music mu mu/$ music videos mu mu/$ videos Spent Remaining 1st ? ?…
Dan consumes two goods: peanut butter andjelly sandwiches, which are an inferior good, andchicken salad sandwiches, which are a normalgood. He gets a raise at work. Will the ratio ofpeanut butter and jelly sandwiches to chickensalad sandwiches that he consumes increase ordecrease?
Your gym offers two classes at the same time:weightlifting and yoga. Both classes are includedin your membership and have space available.Your friend tells you he wants to work on hisstrength and take the weightlifting class, but youalways see him in yoga class. Which class giveshim more utility? How do you know this?
Angela and Vanessa are two friend who always eat ice cream together. The regular price of ice cream is $1 per spoon. Angela always orders 3 spoons and Vanessa orders 5 spoons. Every Tuesday, the ice cream is 50% off. Angela orders 6 spoons and Vanessa order 7 spoons on Tuesday. Which of the following statement is incorrect? O The total quantity of ice cream demanded by Angela and Vanessa increased by 5 on every Tuesday. O Angela's individual demand curve has a downward sloping. O The promotion on every Tuesday shift out the demand curve. O Vanessa's individual demand curve isn't same as Angela's.
5. Max has $35 a day to spend on windsurfing and snorkeling and he can spend as much time as he likes doing them. The price of renting equipment for windsurfing is $10 an hour and for snorkeling is $5 an hour. The table shows the total utility Max gets from each activity. a Calculate Max's marginal utility from windsurfing at each number of hours per day. Does Max's marginal utility from windsurfing obey the principle of Hours per day 1 2 3 4 C. 5 6 Total utility from windsurfing 120 220 300 360 396 412 422 Total utility from snorkeling 40 76 106 128 140 150 158 diminishing marginal utility? b. Calculate Max's marginal utility from snorkeling at each number of hours per day. Does Max's marginal utility from snorkeling obey the principle of diminishing marginal utility? Which does Max enjoy more: his 6th hour of windsurfing or his 6th hour of snorkeling?
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.
The following table indicates Sharona’s marginal utilities from the additional consumption of goodsA and B. The first and third columns of the table show the quantities of goods A and B consumed.The second and the fourth columns show Sharona’s marginal utilities from each additional unit ofgoods A and B consumed. The price of A is $2 per unit, and the price of B is $4 per unit. IfSharona’s budget is $12, then what consumer equilibrium combinations would maximize her totalutility?Table 6.6QA MUA QB MUB1 24 1 482 22 2 443 18 3 364 12 4 24
Currently, Paula is maximizing utility by purchasing five TV dinners (T) and four LeanCuisine Meals (L) each week. Suppose both T and L cost $5 each.a. Graph Paula’s initial utility-maximizing choice.b. Suppose the price of T falls by $1 and the price of L rises by $1.25. Can Paula stillafford to buy her initial consumption choices? What do you know about her new budgetconstraint?c. Make a new graph to show why Paula will choose to consume more T and less Lgiven her new budget constraint to maximize utility. Is her utility increased, decreased,or unchanged given the price change? [Hint: try to make the graph as big as possible tosee how the utility is tangent/intersects with the lines more easily] d. In part (b), suppose another scenario where the price of T rises by $1 and the priceof L falls by $1.25. Is Paula’s utility increased, decreased, or unchanged given the pricechange?
Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either callher on the land-line phone for five cents per minute or he can drive to see her, at a round-trip cost of $2 in gasolinemoney. He has a total of $10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses ahandy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values inTable 6.6, figure out the points on Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch)and identify his utility-maximizing point
1 i The total utility schedule of Sharon is given below for the number of shoes sheconsumes.a. Calculate Sharon’s marginal utility schedule. b. Plot a graph of total and marginal utility. c. What is the maximum number of shoes that Sharon will consume?Explain ii.Assume that Mania has $1,200 per month to spend between dinners at aJapanese restaurant and evenings at Cru, a local bar. Assume that going to Crucosts $25 and eating at the restaurant costs $14.a. Draw Mania’s budget constraint with restaurants on the horizontal axis.b. Suppose Mania comes into some money and can now spend an extra$200 per month. Draw her new budget constraint. c. Suppose the price of restaurants decrease to $12, while her income andthe price of Cru is unchanged. Illustrate what happens to her budgetline.