Mehmet has a monthly budget of 440TL, which he likes to spend on books (b) and movie tickets(m). Draw the budget constraint curve by putting books on the x-axis. Explain the opportunity cost of a movie ticket. 22b + 11m = 440 TL
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- Raymond consumes meatloaves and pineapples. He has decided that hismonthly budget will be $1500. Suppose that one meatloaf costs $375, while onepineapple costs $150.i. What is the expression for Raymond’s budget constraintwhy is there no inclusion of the parameter z in the solutions and the budget constraint?in a real life, consumers do not sometimes satisfy their budget constraint
- The marginal utility derived from the consumption of extra unit of commodity. True/FalseA student has a monthly budget of $120 to spend on either burrito, which cost $6 each, or sodas, which cost $4 each.Draw the student's budget constraint. Put burritos on the x-axis and sodas on the y-axis. Which combinations of burritos and sodas are unaffordable--those to the left of the line in the graph or those above the line in the graph? Why? Which combinations would leave some budget unspent - those to the left of the line in the above graph or those to the right of the line in the above graph?Summer break is approaching! Suppose you derive utility from days spent traveling on vacation domestically, D, and days spent traveling on vacation in a foreign country, F. Your utility function over these two “goods” is: U(D, F) : 4D0.25F 0.75 Let your budget constraint be I(D, F) = pDD + pF F; where I is your income, pD is the price of domestic travel per day, and pF is the price of foreign travel per day. a. Determine the demand functions for domestic travel and foreign travel. Make sure you show your work – show the steps used. b. Suppose that you’ve saved $800 for your summer travel, the price of domestic travel per day is $25 and the price of foreign travel per day is $100. How many days of each type of travel will you embark on? c. Illustrate the indifference curve, budget constraint, and the utility maximizing bundle associated with (b). Make sure you show the level of utility, the budget constraint intercepts, and the optimizing equilibrium.
- True/False Marginal utility is 0 for the Consumption of the very first unit.14) If the expenditures of Salih are equal to his income, it means that he is consuming at a point a) inside his budget constraint b) outside his budget constraint c) on his budget constraint d) which cannot be determinedI have to create a budget constraint for two cars with the median income. However, the income is smaller than the price of the cars. How can I approach this question?
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