ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- 4. Graph the budget line for each of the following circumstances. a. Consider Bobby's choice between watching movies on Netflix and all other consumption goods. Movies cost $5 to watch on Netflix. Bobby has cash income of $60 and a $20 Netflix gift card, which cannot be resold and must be used entirely during the current period. (Graph movies vs. money spent on all other goods here.) b. Monica purchases food and clothes and works at a clothing store. Her income is $300, the price of food is $10, and the price of clothes is $50. Monica receives an employee discount of the following form: She gets 50% off the price of all clothes items after purchasing 2 at the regular price.arrow_forwardPlease find the attached photo,arrow_forwardHenry has $450 to spend on movies and concerts. Suppose the price of a movie ticket is $15 and the price of a concert ticket is $90. Draw Henry's budget line. Your graph should include labels for your axes, and you should note the quantities at which the budget line meets each axis. Label Henry's budget line "BL" Next, suppose that the price of concert tickets drops to $75. Draw Henry's new budget line, and label it 'BL2'.arrow_forward
- dont use chatgpt answer and correct answer i will 10 upvotes.arrow_forwardSienna gets a total of 20 utils per week from her consumption of pizza and a total of 40 utils per week from her consumption of yogurt. The price of pizza is $1 per slice, the price of yogurt is $1 per cup, and she consumes 10 slices of pizza and 20 cups of yogurt each week. Which of the following statements is correct regarding Sienna's current consumption of pizza and yogurt? Sienna should eat more yogurt and less pizza, as she is getting more utils from the $20 spent on yogurt than from the $10 spent on pizza. Sienna should eat more pizza and less yogurt, as she is getting more utils from her last dollar spent on pizza than her last dollar spent on yogurt. We cannot determine if Sienna is maximizing her total utility with the information provided. Sienna should eat more yogurt and less pizza, as she is getting more utils from her last dollar spent on yogurt than her last dollar spent on pizza.arrow_forwardDonarrow_forward
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