1. Suppose Alphonso's town raises the price of bus tickets from $1 to $2 and the price of burgers rises from $2 to $4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso's weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain and sketch the difference graphs.
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- alex has a budget of $100 a month for a movie tickets and restaurant meals. A movie ticket will cost $10 and a restaurant meal costs $20. which of the following combinqtions is part of alexs budget constraint?. Draw the student's budget constraint. Put burritos on the x-axis and sodas on the y-axis. A student has a monthly budget of $120 to spend on either burritos, which cost $6 each, or sodas, which cost $4 each.Use this information to answer the following 4 questions: Marie has a weekly budget of $24,which she likes to spend on magazines and pies.24. If the price of a magazine is $4 each, what is the maximum number of magazines she couldbuy in a week?25. If the price of a pie is $12, what is the maximum number of pies she could buy in a week?26. Draw Marie’s budget constraint with pies on the horizontal axis and magazines on thevertical axis. What is the slope of the budget constraint?27. What is Marie’s opportunity cost of purchasing a pie? I need help with number 26 and 27.
- The table below shows the marginal benefit that Dan derives by consuming different quantities of tacos and soda .The price of a taco is $3 and the price of soda is $1. Quantity sodas Tacos Marginal benefits ($) Marginal benefits($) 1 10 18 2 8 12 3 6 6 4 4 3 5 2 1 6 1 0.6 Refer to the table above.If Dan consumes 3 tacos and 0 sodas -not necessary his optical choice- how much consumer surplus is he enjoying? a) $ 24 b) $ 27 c) $ 9 d) $61. Suppose you earn $1500 per week and you consume only two types of goods per week- sandwiches and orange juice, which you purchase at a mini mart. Each sandwich cost $150 and an orange juice is $75 per cup. a) Construct a table showing the alternative combinations of the two products that are available. b)Plot the data in your table on a budget line. What is the slope of the budget line? What is the opportunity cost of one more cup of orange juice? And what is opportunity cost of one more sandwich? Do these opportunity cost rise, fall or remain constant as you purchase an additional unit of the product? c)Suppose the price of a cup of orange juice increased to $150. Construct a new table showing alternative combinations of sandwiches and orange juice. Construct the new budget line.3. Larry lives with his parents and enjoys listening to jazz. Because of his living arrangements, his only expense is on jazz music. To earn money to buy new albums, Larry must work. Larry has 16 hours per day he could spend listening to jazz or working. Each hour he works he earns $6. Each album costs him $12. Diagram Larry's budget constraint for new jazz albums and time spent listening to jazz. If Larry's parents require him to spend two hours per day doing chores around the house, what happens to his budget constraint? Does the requirement to do chores make Larry worse off?
- The table shows the marginal benefit that Marcus derives by consuming different quantities of hotdog and soda. The price of a hotdog is $3, and the price of a soda is $1. Soda Marginal Benefits ($) Marginal Benefits ($) 10 ITT 8 6 4 2 1 0.6 What is the optimal combination of Soda and Hotdog for Marcus, if his weekly budget for hotdog and soda is $14? Quantity 2 3 4 5 6 O A. 2 sodas, and 4 hotdogs O B. 3 sodas, and 3 hotdogs O C. 5 sodas, and 3 hotdogs O D. 6 sodas, and 5 hotdogs Hotdog 18 12 6 3 1Suppose utility can be measured by "utils" and that Jim buys both coffee and bagels. The price of coffee is $2 and the price of a bagel is $3. If Jim is currently consuming coffee and bagels such that the marginal utility from the last cup of coffee consumed was 6 utils and the marginal utility from the last bagel consumed was 12 utils, is Jim maximizing utility? Why or why not? If not, what should Jim do? Explain in detail.18. Jake and Gonzalo are roommates and have saved a total of $360 to spend on summer entertainment. They have decided to use this money on tickets to baseball games and on tickets to their local amusement park. Their original budget constraint is shown in the graph below. Let X represent amusement park tickets and Y represent baseball tickets. Baseball tickets (Y) 20 15 10 5 0 4 8 12 New budget constraint a. What is the equation of the original budget constraint? b. What is the price of an amusement park ticket? a baseball ticket? c. Assume a price change occurs and Jake and Gonzalo now face the new budget constraint. What is the equation of the new budget constraint? d. With the new budget constraint, what is the price of an amusement park ticket? a baseball ticket? Original budget constraint 16 20 Amusement park tickets (X)
- Use this information to answer the following 4 questions: Marie has a weekly budget of $24, which she likes to spend on magazines and pies. If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week?If the price of a pie is $12, what is the maximum number of pies she could buy in a week?Draw Marie’s budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint?What is Marie’s opportunity cost of purchasing a pie?1. An individual's budget Suppose Bob has a yearly budget of $120 to spend on oat milk and peanut butter. Oat milk is priced at $2 per quart, and peanut butter is priced at $6 per jar. If Bob spends his entire $120 on oat milk, he can buy jars of peanut butter. Use the blue line (circle symbol) to plot Bob's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of oat milk and peanut butter that are affordable for Bob. Finally, place the black point (plus symbol) on the point on Bob's budget constraint that corresponds to a scenario in which Bob spends $60 on each good. Note: Dashed drop lines will automatically extend to both axes. PEANUT BUTTER (Jars) 120 110 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 + 40 50 60 70 OAT MILK (Quarts) quarts of oat milk. If he spends his entire $120 on peanut butter, he can buy + + 80 90 + H 100 110 120 BC, ($120) ☐ Affordable Region $60 on Each BC₂ ($240) ?Aidan has saved up $80 to spend on toys (T) and candy (C). The price of toys is$20, and the price of candy is $1. Every time Aidan buys (and pays for) 2 toys, he gets onemore toy for free. Draw Aidan’s budget line with candy on the Y-axis and toys on the X-axis.Label all intercepts and possible kink points. please hand draw graph and label