An increase in a consumer's income causes her budget set to encompass [ Select ] ["more", "fewer"] bundles.

Q: What can you use to establish whether a budget has been allocated to maximise total utility?…

A: A budget is an expenditure plan that specifies how much money is available for use by a person or…

Q: If BC2 is the relevant budget constraint, then which bundle (combination of X and Y goods) will…

A: Budget constraint shows the combination of two goods that can be purchased with the given income and…

Q: Explain the relationship between the budget constraint and indifference curve at consumer optimum.

A: Consumer optimum is the point of consumer's equilibrium where they get maximum level of…

Q: A consumer has income of $3,000. Fresh Juice costs $3 per glass, and cheese costs $6 per pound.…

A: On horizontal axis we have taken cheese and on vertical axis we have taken juice.  • With an income…

Q: How would universal basic income affect consumer optimum?

A: Universal basic income is a scheme to provide a specific sum of money to all the citizens of a…

Q: The marginal utility derived from the consumption of extra unit of commodity. True/False

A: Utility in economics refers to the pleasure or usefulness that a person gets from consuming a good…

Q: If a consumer is consuming a combination of goods and services on his budget line, has the consumer…

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

Q: A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of…

A: Consumer equilibrium:  A consumer attains equilibrium at a point where the per-dollar marginal…

Q: With the help of a graph, explain how the decrease in the income affect the consumer's choice for…

A: The demand for goods, and services comes from the buyers, or consumers of those goods, and services.…

Q: A consumer has income of 15000. Masks costs $35 per mask, and sanitizers cost $70 per bottle.…

A: Budget constraint represents all combination of goods and services that consumer is able to buy if…

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: A consumer sets themselves a weekly budget of $15 for vegetables. They only eat carrots and peas.…

A: A budget line shows various combinations of two goods a consumer can purchase by spending all income…

Q: A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of…

A: Every human has needs that must be met in order to improve their welfare as a whole. Utility is the…

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: If a household has an income of $50 and buys only milk at $3 each unit and honey at $6 each unit,…

A: Answer: Introduction: Budget constraint or equation: The budget equation shows that the consumer's…

Q: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: Jane has a utility given as U = 4 C^2 F where C and F are the numbers of cloth and food. The prices…

A: Given utility function U=4C2F                     .........(1) Price of cloth  and food are Pc=4 and…

Q: EXERCISE 6 If Ginna spends her entire budget, she could buy a chosen set of groceries and also buy…

A: Utility function : U(G , N ) = 30G + 2N  If Ginna Spends half of her budget (150/2 ) , she could buy…

Q: Effect of an increase in income leads to: an increase in the consumer's utility. The statement is…

A: Income effect is the change in demand for a good or service caused by a change in a consumer's…

Q: Explain the law of marginal utility. What is its importance in understanding the preference of…

A: Utility refers to the usefulness or value of a product or service to a consumer. It can also refer…

Q: A consumer has income of $3,000. Wine costs $3 per glass, and cheese costs $6 per pound. Make a…

A: Budget constraint is the boundary of the opportunity set-all plausible combinations of goods a…

Q: Marie has a weekly budget of $24, which she likes to spend on magazines and pies. 1) If…

A: In economics, a budget constraint represents all the combinations of goods and services that a…

Q: The consumer's total budget is S300. How many units of C and F will they consume?

A: Utility is the level of satisfaction that a consumer gets when consuming a good. Utility…

Q: If a consumer's income decreases, what will happen to the budget line? It will shift outward. It…

A: A budget line, also known as a budget constraint or consumption possibility frontier, is a graphical…

Q: Based on the figure, what point will give the highest level of satisfaction? Point G, Y, D or B?…

A: Utility refers to the amount of satisfaction received by a consumer from the consumption of goods…

Q: I have to create a budget constraint for two cars with the median income. However, the income is…

A: This chapter is related to budget. A budget is an estimate of income and expenditure for a future…

Q: A consumer has a budget to spend on Shoes and Socks. At their current levels of consumption, they…

A: Marginal utility per dollar is the amount of utility obtained by the consumer from spending one more…

Q: A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of…

A: A rational consumer would always aim at maximizing his/her utility. So a consumer would choose the…

Q: If Ginna spends her entire budget, she could buy a chosen set of groceries and also buy 10…

A: Given,  Ginna's budget is £150Her preferences are either groceries (G) or notebooks (N)Utility…

Q: Other things being equal, would a consumer optimum change if the prices of all items consumed rise…

A: A consumer optimum lies at the consumption bundle for which the consumer's utility gets maximized…

Q: 1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The price of this…

A: Income available to spend on product A is $780 Price of product A is $26 => Units purchased with…

Q: Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y…

A: In economics, utility refers to the overall satisfaction derived from the consumption of a good or…

Q: When Marietta chooses to only purchase a combination of goods that lie within her budget line, she:…

A: In consumer theory, the combination of goods and services that a consumer can acquire for his or her…

Q: Refer to the information provided in table below. a. If the price of a cinema ticket is 20 TL, the…

A: Given diagram shows the budget line of the consumer. BB is the budget line, X axis shows concert…

Q: With use of graphical illustration discuss the optimal consumption bundle of an consumer

A: The graph that depicts different combinations or bundles of consumption for two commodities or goods…

Q: If the price of food is $20, the price of clothing is $80, and annual income is $60,000, determine…

A: To determine the optimal combination of food and clothing the consumer will purchase, we need to set…

Q: As consumer has more and more units of a goods, its marginal utility to him (a) Declines (b) Rises…

A: # Marginal utility is the satisfaction derived from the consumption of an additional unit of a good…

Q: Kawther’s income is OMR12 a week. The price of small-sized pizza is OMR3, and the price of a fresh…

A: 1. The budget line equation is given below.