PYQY = M, where PX = $2, PY = $1 and M = $10 (M is income) a. What is the slope of the budget constraint in QX/QY space (where QX is on the horizontal axis and QY is on the vertical axis)? b. What is the relative price of an additional unit

Imagine a consumer has a monthly income of $200. They want to spend this income on two goods: books and movies. The price of a book is $10, and the price of a movie ticket is $20. The budget constraint equation represents all the combinations of books (B) and movies (M)that the consumer can purchase with their income. The equation is: 10B + 20M = 200 Where: (10) is the price of one book. (B) is the quantity of books. (20) is the price of one movie ticket. (M) is the quantity of movie tickets. (200) is the total income.   What is the slope of the budget line? Question 26Answer a. 2.0 b. 0.75 c. 1.5 d. 0.5

Question 3 (Budget Constraint). Vince consumes gas (x1) and food (x2). Suppose the price of gas is $5 per gallon and the price of food is $10 per pound. Vince has $200 per week that he spends on the two goods. a) Draw his weekly budget constraint and put gas on the horizontal axis (food on vertical axis). Label the axes, intercepts, and slope of the budget line. (Note: draw a large graph) b) Suppose there is a gas shortage and the government limits the amount of gas to 30 gallons per consumer per week. Draw this new budget constraint on the graph above (you may use dashed line to reflect ration) c) Alternatively (instead of the ration in part b)), suppose the price of gas increases to $8 per gallon. Draw this new budget constraint on the graph above. d) Does Vince prefer the ration of the increase in prices? Explain why. If his preference cannot be determined, explain why not.

Peter loves spicy food. He consumes both Laoganma chili crisp and Texas Pete hot sauce. His annual budget curve maps from (20 bottles of Laoganma, 0 cups of Texas Pete) to (0 bottles of Laoganma, 24 bottles of Texas Pete). a) Draw his budget constraint. Express the price of Texas Pete, in terms relative to the price of Laoganma. b) Given this set up, would Peter ever consume at the following points of (#bottles of Laoganma, #bottles of Texas Pete)? Why/why not? If we would consume at this point, draw an indifference curve that would justify this decision.i) (12, 12) ii) (6, 15) iii) (6, 6) iv) (12, 10) c) Imagine that Peter consumes 4 bottles of Laoganma. How many bottles of Texas Pete will he consume?d) Now imagine that the price of Texas Pete doubles. Draw the new budget constraint in Laoganma / Texas Pete space. e) Assume Peter goes from the consumption point found in part c of this question to a new point where he consumes 5 bottles of Laoganma to some new consumption point defined…

Suppose there are two goods, x and y. If one good has a negative price, and the other good has a positive price, then the slope of the budget constraint will be positive. is this true or false?

Draw two axes: on the horizontal axis (x-axis), represent the quantity of good x, and on the vertical axis (y-axis), represent the quantity of good y. Plot the initial budget line. The equation for the budget line is m = px * x + py * y. You can rearrange it to solve for y: y = (m - px * x) / py. With given values for m, px, and py, you can plot the line that represents all combinations of goods x and y that the consumer can afford. Plot the indifference curves. These curves represent the combinations of goods x and y that give the consumer the same level of utility. Due to the complexity of the given utility function U(x, y) = xy / (x + y), it may be challenging to plot the exact indifference curves. As an alternative, you can use a simpler utility function for demonstration purposes, such as U(x, y) = x^a * y^b (where a and b are positive constants), which results in easier-to-plot curves. Locate the initial optimal consumption bundle, which is the point where the budget line is…

The graph represents a budget constraint showing the purchases of Good X and Good Y. If the price of good X falls, then budget constraint will move from budget constraint

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.

Simone's initial budget constraint is defined by the following equation:  $21=$3×Qburgers+$0.50×Qsoda$21=$3×Qburgers+$0.50×Qsoda If the price of the burgers decreases from $3.00 to $1.50, and the price of soda increases from $0.50 to $0.80. What is the maximum number of burgers she can purchase?

Write out the standard form of a budget constraint (meaning only with variables, no numbers). Then, write a budget constraint that represents the following situation and graph it (LABEL YOUR AXES, INTERCEPTS, AND SLOPE!!!!!) The price of apples is $2 per pound and the price of bananas is $3 per pound. You have $25 available to spend on apples and bananas combined.