The figure shows Laura's budget line. Laura buys only lilies (Y) and orchids (X). Lilies (number per month) 167 The price of a lily is $4 and the price of an orchid is $7. 14- Suppose Laura's income rises by $14 a month, the price of a lily increases by $6, and the price of an orchid remains the same. 12- What is the equation of Laura's new budget line? 10- ..... 8- The equation of Laura's new budget line is 6- O A. Y= 70 - 3.0X 4- O B. Y= 70- 6.0X O C. Y= 7-.7X 2- O D. Y= 7- 1.43X Budget line 0- 10 Orchids (number per month)

The figure shows Laura's budget line. Laura buys only lilies (Y) and orchids (X). Lilies (number per month) 167 The price of a lily is $4 and the price of an orchid is $7. 14- Suppose Laura's income rises by $14 a month, the price of a lily increases by $6, and the price of an orchid remains the same. 12- What is the equation of Laura's new budget line? 10- ..... 8- The equation of Laura's new budget line is 6- O A. Y= 70 - 3.0X 4- O B. Y= 70- 6.0X O C. Y= 7-.7X 2- O D. Y= 7- 1.43X Budget line 0- 10 Orchids (number per month)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section21.1: The Budget Constraint: What The Consumer Can Afford

Problem 1QQ

See similar textbooks

Similar questions

Suppose Carlos has a budget of $100 to spend on soft drinks and bottled water. Soft drinks cost $2 per liter. Bottled water costs $1 per liter. Draw Carlos's budget line in the graph.
The graph shows the budget line for a consumer who only buys cookies and magazines. If the consumer's income is $20, what is the price of a cookie? Cookies (number per week) 24 20 16 8 0 2 4 6 8 10 12 Magazines (number per week)
Raymond consumes meatloaves and pineapples. He has decided that hismonthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. Suppose Raymond decides to cut his monthly budget in half. Coincidentally, the next time he shops, he learns that meatloaves and pineapples are on sale for half price. Show what happens to Raymond’s budget line?
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.
The nearby graph shows Claudia's budget constraint for purchases of shoes and purses. Claudia's monthly budget for shoes and purses is $100. Claudia's parents have told her that she has too many shoes and is not allowed to buy more than 1 pair a month. If she buys 1 pair of shoes and 1 purse, she will have $______left each month. Number of 4.5 purses 4.0 3.5 3.0 2.5 2.Q 1.5 1.0 0.5 $50 $10 O $75 $25 0 0.2 0.4 0.6 1.0 1.2 Number of pairs of shoes 0.8
Raymond consumes meatloaves and pineapples. He has decided that hismonthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. i. Draw a graph of Raymond’s budget line (meatloaf on the y axis). ii. Show how Raymond’s budget line changes if the price of pineapplesincreases to $370.
32/ Assume that a consumer has a given budget or income of $24 and that she can buy only two goods, apples or bananas. The price of an apple is $3.00 and the price of a banana is $2.00. What is the slope of the budget line if the quantity of apples were measured on the horizontal axis and bananas on the vertical axis?
The graph shows the budget line for a consumer who only buys cookies and magazines. If the consumer's income is $20, what is the price of a Magazine? 24 20 16 4 2 4 6 8 10 12 Magazines (number per week) dollar(s) Cookies (number per week)
Suppose that with a budget of $210, Fatima spends $126 on sushi and $84 on bagels when sushi costs $2 per piece and bagels cost $2 per bagel. Then, after the price of bagels falls to $1 per bagel. Instructions: Enter your answers as a whole number. How many pieces of sushi and how many bagels did Fatima consume before the price change? pieces of sushi and bagels At the new prices, how much money would it have cost Fatima to buy those same quantities (that is, the quantities that she consumed before the price change)? Given that it used to take Fatima's entire $210 to buy those quantities, how big is the income effect caused by the lower price of bagels?
Considering the following Diagram of consumer equilibrium, answer the following questions. If consumer has $100 to spend on X and Y at Budget line DE, what are the prices of X and Y products. What combination of X & Y maximizes the consumer’s total utility at Budget line DE? Why a consumer has moved to point B on Budget line DE1 from Point A of Budget line DE? Derive the demand curve of X product. What is relationship between X and Y products
1. Gertrude had a weekly income $9. At that time, a bulla sold for $1 and a drink for $1.50. a) What is Gertrude's real income in terms of bullas? b) What is her real income in terms of drinks? c) What is the relative price of a drink (in terms of bullas)? d) Sketch Gertrude's budget constraint (placing drinks on the vertical axis). e) Suppose she chooses to consume 3 bullas and 4 drinks per week. Is she satisfying her budget constraint? f) Sketch the budget line if the price of bullas rises to $2 and all other values remain unchanged. g) Sketch the budget line if the price of drinks rises to $3 and all other values remain at their original levels. h) i) Sketch the budget line if Gertrude gets a raise to earn $18 a week and prices remain at their original levels. Supposes all changes take place together: the price of bullas rises to $2, the price of drinks rises to $3, and Gertrude gets a raise to earn $18 a week. How does the new budget line compare to the original one?
1. An individual's budget Suppose Darnell has a weekly budget of $32 to spend on ranch dressing and spinach. Ranch dressing is priced at $4 per bottle, and spinach is priced at $2 per container. If Darnell spends his entire $32 on ranch dressing, he can buy 16 containers of spinach. 8 bottles of ranch dressing. If he spends his entire $32 on spinach, he can buy Use the blue line (circle symbol) to plot Darnell's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of ranch dressing and spinach that are affordable for Darnell. Finally, place the black point (plus symbol) on the point on Darnell's budget constraint that corresponds to a scenario in which Darnell spends $16 on each good. Note: Dashed drop lines will automatically extend to both axes.