Suppose you have a monthly income of $1000, $850 in monthly expenses, and you can put money in a savings account that yields a monthly interest rate of 4%. Create a budget constraint showing the trade-off between present consumption (horizontal axis) and future consumption (vertical axis). How much will you have in the future if you choose to consume $850 now? Show this point on your budget constraint.

Juan is currently working in a job that pays $25 an hour and he chooses to work 8 hours per day. Assume that Juan can work a maximum of 16 hours a day, and he has complete flexibility in how many hours a day he works. Illustrate Juan’s budget constraint and his optimal choice of consumption and leisure. What is the slope of his budget constraint? What does this slope represent? (As on any graph you draw, make sure that you label the axes, the intercepts and the optimal choice.) Juan begins receiving a government transfer payment of $100 per day. Add his new budget constraint to your graph in (a) and show his new optimal choice. Does he choose more or less consumption? More or less leisure? Explain why for both goods. The government imposes a tax of 25% on Juan’s earnings from work and increases his government transfer to $150 per day (the government transfer payment is not taxed.) Redraw the budget constraint from part (b) (omit the part (a) budget constraint), and add a new budget…

A basket of goods for a given consumer includes two goods, X and Z. Consumer income is equal to $1,500 and the prices of these two goods are as follows:   Px = $25   Pz = $25 This consumer is consuming10 units of good X.   Suppose that over the course of a year, the price of good X changes by 10% and the price of good Z changes by −10%.   How much income would be required for the consumer to afford the same quantity of goods X and Z with the new prices? $______

Katie Kwasi's utility function is U(x₁, x₂)=5(In x₁)+x₂. Given her current income and the current relative prices, she consumes 10 units of x₁ and 15 units of x₂. If her income doubles, while prices stay constant, how many units of x₁ will she consume after the change in income? a)10 b)20 c)15 d)5

Suppose Marcus eats nothing but burritos for dinner. He buys 30 burritos each month. During the last couple of weeks, Marcus noticed a decrease in the price of burritos. The price of burritos fell from $6.00 per burrito last month to $5.75 per burrito this month. Assume that Marcus has a fixed income of $180 that he can spend on burritos. How many burritos can Marcus afford to buy at the new price of $5.75?

please get correct it keeps saying wrong.

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 consumcr's budget line change if she received a $1,000, non-refundable and non-transferable, gift card from Home Depot? Assume Home Depot only sells tools. to that from the previous question? How does this budget line compare Note: The $1,000 gift card can only be spent on tools.

urgent

Please answer fastly. I need it in 15 minutes. I will appreciate it if you could answer it quickly. Thank you!   If the price of eggs were to double from $1 per egg to $2 per egg, Freddy would consume 6 fewer eggs without changing his consumption of other goods, which would he prefer? the price increase? or losing $6?

Pam has a monthly budget of £120 to be spent on T-shirts and trainers. She could afford to buy two T-shirts and two pairs of trainers. She could also buy eight T-shirts. In each case, she would be spending her entire monthly allowance. Calculate the price of a T-shirt and the price of a pair of trainers. Write down Pam’s budget equation and draw the corresponding budget line. Mark the two consumption bundles mentioned above. In your graph, clearly label the axes, the budget line, and calculate the coordinates of the points of intersection of the budget line with each axis. Interpret each of those points. Discuss how Pam’s budget set would change if the price of a T-shirt doubles. Show the relevant changes graphically. How should Pam’s income change so that she could still afford to buy two T-shirts and two pairs of trainers? Discuss how Pam’s budget constraint would change if the government imposed a tax of £3 per each pair of trainers.