Answered: If the price of good Xis $10 and the…

If the price of good Xis $10 and the price of good Y is $5, how much of good X will the consumer purchase if her income is $15? 2 3 Cannot tell based on the above information.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the price of good X is $10 and the price of good Y is $5, how much of good X will the consumer purchase
if her income is $15?
2
Cannot tell based on the above information.

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I need question sub part D and E answer. Typed answer..
1. Use the budget constraint P_X + P_Y = M, thinking of good X as a food item and good Y x as other goods. Present an analysis where an increase in price of the food item causes the consumer to buy less food, demonstrating the "law of demand." b. Then, present a second analysis where an increase in the price of the food item causes the consumer to buy more of the food item, which is the Giffen Good case. Finally, identify two food items, one which you think fits the first case and one which you think fits the second case.
By definition, a budget constraint shows the consumption bundles that a consumer can afford. Assume that a college student spends her income on Mc-cheese and CD's. The price of one box of Mc-cheese is $1.00 and the price of one CD is $10.0 . If she has $90 of income, she could choose to consume : a- 10 boxes and 9 CDs b- 30 boxes and 7 CDs c- 25 boxes and 6 CDs d- 25 boxes and 8CDS
Mr. Chang can buy two goods- cake and juice. If he spends his entire income on cake, he can buy 30 cakes and if he spends his entire income on juice, he can buy 60 liters of juice. If the price of cake is $6/cake: What is the price of 1 liter of juice? Draw a neatly labeled diagram showing Mr. Chang’s possible consumer equilibrium clearly. If his income changes to $240, what would happen to Mr. Chang’s consumer equilibrium? Is he better off or worse off? Why? Indicate using a diagram.
Answer the following short questions:a. Suppose that a consumer’s preferences between goods x andy are represented by the utility function u(x, y) = x^2 + 16xy + 64y^2. If these two goods have the same price, describe the optimal consumptionchoice of this consumer.b. Suppose that when the price of a good change, the incomeand substitution effects change the consumer’s demand for that goodin opposite directions.i. Is this good a normal or an inferior good? Explain.ii. Is this good a Giffen or an ordinary good? Explain.c. Is the following statement true or false? The differencebetween a monopolist’s marginal cost and its profit-maximizing price issmaller when the demand is more elastic.
If the consumer income is OR 568, price of good (X) is OR 81.3 and the price of good (Y) is OR 33.7, what is the quantity of good (Y) purchased by the consumer if he is only purchasing good (Y). Select one: a. 6.99 b. 0.14 c. 0.06 d. 16.85
what are the units of a good? what are the units of b good? what are the units of c good? the total utility of consuming five units of the b good is what utils? the total utility of consuming three units of the a good is what utils?
E2 Draw a budget line for 2 goods with prices of $1 and $2 for the first and second good, respectively, and income of $8. a. Find some prices and income that will lead to a new budget line that intersects the old budget line ONLY at the midpoint of the old budget line. b. Can the old and new budget line have the same slope? c. Can the old and new budget line have the same prices? d. Can the old and new budget line have the same income and only one different price?
Given: Assume a consumer is attempting to maximize utility subject to the budget constraint by choosing units of consumption between two goods: good 1 and good 2. Utility maximizing choices are provided in the following table for a baseline scenario and new scenario. Item Baseline New Price of Good 1 $10 $10 Price of Good 2 $10 $6 Income $20,000 $20,000 Units Consumed, Good 1 1000 1250 Units Consumed, Good 2 1000 1250 Utility 4000 5000 Using the table, how did the new event affect good 2? It caused demand for good 2 to decrease. O It caused demand for good 2 to incrcase. OIt caused quantity demanded for good 2 to increase. O It caused no change in quantity demanded for good 2. It cause quantity demanded for good 2 to decrease. It caused no change in demand for good 2.
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