Anne likes pizza and chicken wings. Pizza costs $4 per slice, and chicken wings cost $10 for dozen. Let P denote the number of slices of pizza and C the number of dozens of chicken wings. If Anne's total income is $50, her budget line is: xP+ xC=

Anne likes pizza and chicken wings. Pizza costs $4 per slice, and chicken wings cost $10 for dozen. Let P denote the number of slices of pizza and C the number of dozens of chicken wings. If Anne's total income is $50, her budget line is: xP+ xC=

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Mary spends all her budget on statistical software (S) and office supplies(O). Her preferences can…

A: Given, Utility function: U(S, O) = 2 ln(S) + 3 ln(O). Budget line, I = Ps.S + Po.O 10 = 2S + 3O Ps =…

Q: Suppose a consumer had a utility function given by: U = X²Y0.5. If the price of Good X (Px) is $3…

A: The utility function is given as The price of good X is $3.The price of good Y is $6. The budget for…

Q: Assuming that both Joe and Hammad are maximizing their utility, what is Joe's marginal rate of…

A: Utility is the total satisfaction derived from the consumption of the goods available for…

Q: A consumer has set a budget of $400 for the consumption of good X and Y. The price of Good X is…

A: Utility function : U (X, Y ) = x y Price of x : Px Price of y : 5 Budget Set = 400 Therefore ,…

Q: Suppose that a consumer has $200 to spend on two goods: beer and pretzels. The price of beer is…

A: Given Price of beer (Pb)=$6 Price of pretzels (Pp)=$3 Pretzels are on x-axis and beer is on y axis.…

Q: Suppose a student’s entire weekly pocket money (income) is spent on cafeteria’s fast food and hut’s…

A: Budget Line shows the combination of two goods a consumer can purchase with his/her given income and…

Q: Suppose Natasha consumes two goods: good 1 and good 2. Last year, the price of good 1 was $2.00 and…

A: Laspeyres Index is a consumer price index used to calculate the change in prices of a basket of…

Q: Penny likes to have peanut butter (B) with apples (A). The price of apples is $3 per pound and…

A: Utility is maximized when marginal rate of substitution is equal to price ratio of two goods at the…

Q: Create a diagram with axes representing the quantities of XA and XB. Plot the original and new…

A: Substitution effect measures the change in the quantity of the commodity when the price of the…

Q: A consumer has $100 and would like to purchase food (F) and gas (G). Suppose their utility is given…

A: Given: U ( F,G ) = F 0.8 G 0.2 M= PF x F + PG x G 100 = PF x F + PGx G MUF= o.8 ( G / F ) 0.2 MUG…

Q: a) If the price of food is $1, and of all else is $2, how much of each good will Pat choose? b) If…

A: Consumer theory studies how people decide to spend their money based on their individual preferences…

Q: Each month Larry purchases household utilities. His preferences over gallons of heating oil (x) and…

A: A want satisfying power of a commodity or service is known as its utility. Utility is a significant…

Q: Lucas has $40 per week that he can spend on lemon soda (X) and chips (Y). The price of the lemon…

A: The budget refers to the total income of a consumer which can be used to buy a given level of goods,…

Q: An individual has a utility function, U(x, y) = x ∙ y, with a budget constraint, 120 = 2x + y. (a)…

A: Consumer maximizes utility subject to the budget constraint. The consumer consumes at the point…

Q: Suppose a student's entire weekly pocket money (income) is spent on caf eteria's fast food and hut's…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Casper's utility function is 3x + y, where x is his consumption of cocoa and y is his consumption of…

A: The budget line shows the different combinations of two goods that a consumer can consume given the…

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: Mika earns $395 per week which she spends entirely at the grocery store, purchasing either food or…

A: Hey champ,Welcome to this platform. Here you will get the answer with better quality in minimum…

Q: x0.5 y0.5, A consumer has a Cobb-Douglas utility function u = and she has a bundle of goods (x, y) =…

A: The Cobb-Douglas utility function is a widely used form of utility function in economics that…

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…

A: If price of only one good increases (decreases), budget line rotates inward (outward) along the axis…

Q: To maximize utility, Connie should buy pounds of meat and potatoes. (Enter your responses rounded to…

A: Utility maximisation is the process of maximising the utility of the consumer subject to the budget…

Q: Recall that Casper's utility function is 3x + y, where x is his consumption of cocoa and y is his…

A: The want satisfying power of any commodity or service is known as utility. The utility function is a…

Q: Suppose there are two goods, x and y. If one good has a negative price, and the other good has a…

A: The objective of the question is to determine whether the slope of the budget constraint will be…

Q: maddy is a single mom with a weekly budget of $100. She can spend her weekly income on food and…

A: Consumer theory is referred to the study of how an individual decides on spending their wealth on…

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: Suppose the price of a donut is $2.50, the price of a cinnamon roll is $3.20, and the budget is $50.…

A: Budget line: A budget line depicts a consumer's maximum demand at a specified income level. If there…

Q: The utility function of a consumer regarding two goods x and y is given by U(x,y) = x^(7.9)y^(9).…

A: U(x,y) = x7.9y9 Price of x (Px) = 19 Price of y (Py) = 80 Total Income (M) = 10800

Q: Anna has an income of 1000 euros and utility function U(x,y)=x²y³. The prices of the two goods are…

A: Budget Constraint:A budget constraint represents the limit on the consumption of goods and services…

Q: Aji's utility function for Blueberry (b) and Raspberry (r) is given as U = f(b, r); Budget…

A: Answer: Given, Budget constraint: 100=4b+5rWhere,b=number of blueberryr=number of raspberry (1).…

Q: Zoe's utility function for brownies (X) and pizza (Y) is given by U(X,Y)= 8XY. Her monthly income is…

A: The utility function is the mathematical relationship between utility and bundles of commodities. It…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Hector is consuming two goods, i.e., bottled water and soda pop. He has a constant budget and fixed…

Q: The utility of a consumer derives from consuming the two goods X and Y can be assumed to be…

A: Let us consider that X and Y represents the consumption level of good X and good Y respectively.…

Q: A basket of goods for a given consumer includes two goods, X and Z. Consumer income is equal to…

A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…

Q: A consumer’s budget set for two goods (X and Y) is 500 ≥ 4X + 5Y. a. The budget set is illustrated…

A: The budget constraint is given by the inequality: 500≥4X+5Y.To find the values of A (the intercept…

Q: The price of a hand sanitizer is Tk. 120 and the store fixed the maximum number of hand sanitizers…

A: Budget line shows all combinations of the two goods that the consumer is able to purchase utilizing…

Q: In Problem 6, Elmer's utility function is U(x, ) = min{x, y²}. If the price of x is $20, the price…

A: From the utility function, we know x and y are complements Thus, x=y2 When y= 8 x = (8)2 = 64if 8…

Q: Check All That Apply the budget constraint will become steeper (the absolute value of the slope will…

A: Changes in income can have significant effects on consumer behavior and budget constraints. A budget…

Q: Charlie has a utility function U(xA, xB) = xAxB, the price of apples is $1, and the price of bananas…

A: Utility means satisfaction.Marginal utility is the utility derived from the consumption of an…

Q: At last time you have answered my question ,but I still have some problems want to ask you and there…

A: To understand the concepts of the Indifference Curve and Budget Line, let us first understand the…

Q: Suppose a cup of coffee at the campus coffee shop is $6.4 and a cup of hot tea is $12.0. Suppose a…

A: This can be defined as a concept that shows from the available fixed resources to the consumer how…

Question

Anne likes pizza and chicken wings. Pizza costs $4 per slice, and chicken wings cost $10 for a
dozen. Let P denote the number of slices of pizza and C the number of dozens of chicken
wings. If Anne's total income is $50, her budget line is:
xP+
xC=

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Rhea is determining how many gallons of milk (M) and loaves of bread (B) to purchase. Use the information in italics to answer the bolded question below: Rhea's marginal utility function for milk: MUN • Rhea's marginal utility function for bread: M = 0.5M-2 MUB = 0.5MB-1/2 • Rhea has $60 to spend on bread and milk. • The price of milk (Pm) is $3/gallon of milk. • The price of bread (Pb) is $1/loaf of bread. • For the sake of computation, assume that bread is the horizontal axis good (i.e., good X) and milk is the vertical axis good (i.e., good Y). When you set up the optimal budget decision rule for Rhea's consumer problem, which of the following statements best describes how much she will buy of both goods at her consumer equilibrium? O For each gallon of milk, Rhea will buy 1/3 loaf of bread. O For each gallon of milk, Rhea will buy 3 loaves of bread. For each gallon of milk, Rhea will buy 1 loaf of bread. O For each gallon of milk, Rhea will buy 6 loaves of bread.
Q6 If the utility function of consumption of a pizzas and y sodas is ry, the cost of pizzas is $5 each, the cost of sodas is $2 each, and the total amount available for snacks is $20. Find the amounts of pizzas and sodas for which consumption will be a maximum.
There are two goods, apples and bananas. The price of apples is PA = $2,and the price of bananas is PB = $3. A consumer has $120 to spend, and his utility function is U(A,B)=2A2B3 a) With apples on the x axis, the slope of the budget line is ________ b) At A=2, B=1, the marginal utility of A is and the marginal utility of B is ________ c) At the optimal bundle, the consumer buys apples and bananas ______
Suppose your classmate Hilary loves to eat dessert-so much so that she allocates her entire weekly budget to apple crisp and pie. The price of one bowl of apple crisp is $1.25, and the price of a piece of coconut crème pie is $5.00. At her current level of consumption, Hilary's marginal rate of substitution (MRS) of apple crisp for pie is 4. In other words, Hilary is willing to sacrifice four bowls of apple crisp for one piece of pie per week. Does Hilary's current consumption bundle maximize her utility? That is, does it make her as well off as possible? If not, how should she change it to maximize her utility? O Hilary could increase her utility by buying more apple crisp and less pie per week. Hilary could increase her utility by buying less apple crisp and more pie per week. O Hilary's current bundle maximizes her utility, and she should keep it unchanged.
The total utility from two products is maximized at the optimal consumption bundle. True or False?
Suppose we are able to model the total utility function for the consumption of two goods, good x and good z. The utility function is structured as U(x, z) = 3x2 + z2 - 2xz. The consumer is faced with the prices of goods x and z. The price for each unit of good x and z is $1 each. The consumer has an income $1 (in thousands). How many units of each good should the consumer consume so as to maximize his/her utility?
A consumer has an income of $400 and is deciding between two products: X and Y. Assume that the X product is the horizontal axis product. The price of X is $10 and the price of Y is $2. Assume the consumer currently wants to consume 50 units of product Y to maximize his utility. a) Write out the equation to this consumers budget line. What is the slope to this budget constraint? b) How much of X and Y will the consumer consume to maximize his utility subject to his budget constraint. C) Now assume the price of X changes to $5 and price of Y and Income stays the same. At the new price, the consumer wants to buy 60 units of product X to maximize her utility given her budget. How much X and Y will the consumer consume to maximize utility. g in the before and after the change of the budget constraint and indifference graph on the same graph space. Show all necessary points. Label clearly. ead oubstitutiofs. Draw d) Write out the expression of the utiiity maximizing ruie here.?
please help
Ellie spends £20 on Energy drink (E) and Juice (J). Her preferences for these goods can be described by the following utility function: U ( E,J) = 2E + J^2 ( J squared) - J (MUt = 2, MUj = 2J - 1) Suppose that one energy drink costs £1.60 while one carton of Ellie’s favourite Juice costs £4.00. a) Find Ellie’s optimal consumption bundle. Provide both algebraic and graphical solution. Explain your reasoning. b) Discuss how Ellie’s optimal consumption choice would change when her disposable budget changes. c) If the price of energy drinks increases to £2.00 per can, how should the price of Juice change so that Ellie can be as well off as before this change in prices? d) Discuss the implications of the price change from c) on Ellie’s optimal choice. In your discussion, include the analysis of the substitution and income effects as well as Ellie’s demand for Energy drink and/or Juice.
Alice receives an allowance of 500 dollars that she spends on buying snacks (S) and tea (T). The price of each snack is 10 dollars and the price of each tea is 5 dollars. Her utility is given by: U (S, T) = 2S³/4 +T3/4 (a) Find her marginal rate of substitution (MRS) between S and T. (b) Write Alice's budget constraint. (c) Find Alice's optimal consumption and the optimal A. (d) What is her new consumption if the price of tea becomes 10 dollars? Note: numeric solutions for questions (c) and (d) are not integers.
You like candy and cake. After using your entire $30 budget at the sugar store, you find that the marginal utility from the last candy you consumed was 60 and the last piece of cake was 30. Assuming you have maximized your utility and the price of a piece of candy is $4, calculate the price of cake? Do not enter dollar signs. Answer:
Consider Gary's utility function: U(X,Y) = 5 XY, where X and Y are two goods. If the individual consumed 10 units of X and received 250 units of utility, how many units of Y must the individual consume? 5 25 0 10