Consider a consumer's annual budget constraint for two goods: "everything else" and "tools". When answering the following questions, please be sure to label your graph accordingly. Draw the budget constraint for this consumer if income (v) = $60,000 and the price per tool (p.) is $20. Note: please graph tools along the x-axis. How would this consumer's budget constraint change in she received an additional $1,000 in income? Returning to the original conditions, how would this consumer's budget linc change if she received a $1,000, non-refundable and non-transferable, gift card from Home Depot? Assume Home Depot only sells tools. How does this budget line compare to that from the previous question? Note: The $1,000 gift card can only be spent on tools.

Jane's utility function is represented as: U = F0.5 C0.5, F is quantity of food and C is quantity of clothing. If her budget constraint is represented as: 110 = 4F + 3C, her optimal bundle of consumption contains how many units of clothing? Your Answer: Answer

A consumer has an annual budget constraint for two goods: “housing sq. ft." and "$ for everything else". Draw the budget constraint for this consumer if income (v) = $50,000 and price per sq. ft. of housing, ph, is S200. Please be sure to fully label your graph (i.e., slope, intercept, etc.). Note: plot "housing sq. ft." on the x-axis. How would this consumer's budget line change if she received a $5,000 raise and the price of housing increased to $250? Include a graph with your answer. How did the economic rate of substitution (ERS) between housing and $ for everything else change when pa changed? Please interpret the ERS both before and after the price change.

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=

Suppose an individual is currently spending all of their income on a bundle of books and pizza, but they are not sure whether the bundle maximizes their utility. Assume the individual has a strictly diminishing marginal rate of substitution over these two goods. At their current bundle of books and pizza, the individual's marginal utility from consuming books is 6 utils and their marginal utility from consuming pizza is 3 utils. If the current price of a book is $12 and the price of a pizza is $7, which of the following statements must be true: A. The individual can increase their utility by consuming more books and less pizza B. The individual is maximizing their utility C. The individual can increase their utility by consuming more pizza and fewer books

A college student has two options for meals: eating at the dining hall for $6 per meal, or eating a Cup O’ Soup for $1.50 per meal. Hisweekly food budget is $60. Draw the budget constraint showing the trade-off between dining hall meals and Cups O’ Soup. Assuming that he spends equal amounts on both goods, draw an indifference curve showing theoptimum choice. Label the optimum as point A.Suppose the price of a Cup O’ Soup now rises to $2. Using your diagram from part (a), show the consequences of this change in price. Assume that our student now spends only 30 percent of his income on dining hall meals. Label the new optimum as point B.

Christin has a monthly income of $500 that he allocates between two goods: food and clothing. Suppose food costs $8 per pound and clothing cost $5 per piece. a) Draw her budget constraint properly labelling the axes. 0.5 b) Suppose also that her utility function is given by ?( f,c)= 2f ^2 + c^2 . What combination of food and clothing does she buy in order to maximize her utility? Show your work mathematically. Round your answer to two (2) decimal points.

A consumer has $200 per month to be speht on books (good B) and DVDS (good D). 11- Market prices are as follows: 10- P3 = $40 and P, = $20. 9- Use the line drawing tool to plot this consumer's budget constraint. Label this line "Budget". 7 Carefully follow the instructions above, and only draw the required object. Given this data, what is the marginal rate of transformation? 4- MRT = (Enter your answer as a real number rounded to two decimal places. 3- Be sure to include the minus sign) 0- Books Reaction tv MacBook Air 80 DII DD F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F1 @ # * ( ) 1 4 7 8 9. Q W E T Y U { S F G H J K C V N M tion command command option .. .- DVDS * 3

Lucas has $40 per week that he can spend on lemon soda (X) and chips (Y). The price of the lemon soda (PX) is $2 per bottle, and the price of the chips (PY) is $4 price  Write down Lucas’s budget constraint. Draw the budget constraint on the graph below. Make sure to indicate the intercepts and the slope of budget constraint. Label it as BC1.    Provide an economic interpretation of the slope of the budget constraint BC1 Suppose Lucas’s income decreases to $12 per week, and the price of lemon soda and chips remain the same. Write down Lucas’s new budget constraint. Then draw his new budget constraint on the same graph above.  Make sure to indicate the intercepts and the slope. Label it as BC2.    Suppose Lucas’s income remains to be $40 per week and the price of chips remains the same, but the price of lemon soda (PX) increases to $5. Write down Lucas’s new budget constraint. Then draw his new budget constraint on the same graph above. Make sure to indicate the intercepts and the…

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?