The points located at the intersection of the budget line with the y axis means:   a) these are points impossible to reach by the consumer b) the consumer spends absolutely nothing c) the consumer spends all his income for only one good d) the consumer does not spend all his income

Q: What can you use to establish whether a budget has been allocated to maximise total utility?…

A: A budget is an expenditure plan that specifies how much money is available for use by a person or…

Q: Suppose a consumer had an income of $100 and spends $50 on potatoes. Suppose now that his income…

A: Given information: Initial income: $100 Final income: $150 Initial spending (demand) on potatoes:…

Q: A consumer has a utility function 9*sqrt(x1)+x2 and a budget constraint of 8x1+6x2 ≤10000. How much…

A: Utility means satisfaction.  Utility is maximized where the MRS is equal to the price ratio of two…

Q: The blue budget line is for an income of $1000, Px=$5 and Py=$10. At point A, the person is evenly…

A:

Q: You have $16 to spend purchasing Krystal burgers ("good X") and tallboy cans of PBR ("good Y"),…

A: Hi! thanks for the question but as per the guidelines, we answer up to three parts at one time.…

Q: A consumer has an expenditure function given by E = U (²+2). When the consumer has an income of 100,…

A: The maximum utility can be defined as the highest level of satisfaction, well-being, or benefit that…

Q: 1. John consumes good X and good Y. His expenditure function is E=2U(PX)^5(PY)^5. His demand for…

A: Utility:The utility is want satisfying power of a commodity. It can be expressed in cardinal and…

Q: An increase in a consumer's income causes her budget set to encompass […

A: When consumers income increases,more goods would be bought with the same amount of income.

Q: A consumer has income of 15000. Masks costs $35 per mask, and sanitizers cost $70 per bottle.…

A: Budget constraint represents all combination of goods and services that consumer is able to buy if…

Q: Price of Can of Beer = $0.50 Total Utility Price of Slice of Pizza = $1.00 Slices per Week Total…

A: According to the question, the price of beer is $0.5 and pizza is $1.

Q: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: Question 1: The city of Denver is concerned with its citizens' consumption of craft beer. They (the…

A: A budget line is a line that shows all the possible combinations of two goods that a consumer can…

Q: Jane has a utility given as U = 4 C^2 F where C and F are the numbers of cloth and food. The prices…

A: Given utility function U=4C2F                     .........(1) Price of cloth  and food are Pc=4 and…

Q: Suppose the price of a candy bar is $1.25, the price of a bag of chips is $1.75, and the budget is…

A: If price of only one good increases (decreases), budget line rotates inward (outward) along the axis…

Q: Effect of an increase in income leads to: an increase in the consumer's utility. The statement is…

A: Income effect is the change in demand for a good or service caused by a change in a consumer's…

Q: Susan buys bagels and falafels. The price of a falafels is £1 and the price of a bagels is £3. Susan…

A: Price of F=1Price of B=3M=12Budget constraintPF*F+PB*B=<M1*F+3*B=<12

Q: The consumer's total budget is S300. How many units of C and F will they consume?

A: Utility is the level of satisfaction that a consumer gets when consuming a good. Utility…

Q: If a consumer's income decreases, what will happen to the budget line? It will shift outward. It…

A: A budget line, also known as a budget constraint or consumption possibility frontier, is a graphical…

Q: Based on the figure, what point will give the highest level of satisfaction? Point G, Y, D or B?…

A: Utility refers to the amount of satisfaction received by a consumer from the consumption of goods…

Q: ob can buy two kinds of goods, food and clothing. He earns £400 per week. Food items cost £4 each,…

A: Budget line is a graph that depicts thee possible combinations of two goods or services that a…

Q: Xavier has preferences between food eaten today and food eaten tomorrow of the form. U(today,…

A: Utility maximization problem : With the given prices and the income, a consumer chooses his…

Q: A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of…

A: A rational consumer would always aim at maximizing his/her utility. So a consumer would choose the…

Q: Other things being equal, would a consumer optimum change if the prices of all items consumed rise…

A: A consumer optimum lies at the consumption bundle for which the consumer's utility gets maximized…

Q: Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y…

A: In economics, utility refers to the overall satisfaction derived from the consumption of a good or…

Q: When Marietta chooses to only purchase a combination of goods that lie within her budget line, she:…

A: In consumer theory, the combination of goods and services that a consumer can acquire for his or her…

Q: draw the budget constraint for a person with income of $ 1000 if the price of pepsi is $5 and the…

A: A budget constraint is a term used in economics to describe all of the different combinations of…

Q: Sarah has a budget of 58. Her utility function if U(x,y) = x*y. %3D The price of good x is 1, the…

A: Given: Budget = M=58 Price of good x = 1 Price of good y = 8 Budget constraint equation: Pxx+Pyy=M…

Q: What is “Compensating Variation”? What is “Consumer’s Surplus”? What is “Equivalent Variation”? What…

A: Utility:The utility is the power or ability of the goods and services that satisfy the consumers…

Q: If the price of food is $20, the price of clothing is $80, and annual income is $60,000, determine…

A: To determine the optimal combination of food and clothing the consumer will purchase, we need to set…

Q: When the price of one'good increases and the price of the other good and income are held constant,…

A: Suppose there are two goods, i.e., X and Y Px is the price of X Py is the price of Y M is income.…

Q: 11)Which of the following describes what happens to a consumer's budget line if that consumer's…

A: Budget line: A budget line is the graphical representation of all the possible combinations of two…

Q: As consumer has more and more units of a goods, its marginal utility to him (a) Declines (b) Rises…

A: # Marginal utility is the satisfaction derived from the consumption of an additional unit of a good…

Q: What is the logarithmic transform of the utility function U=xα1xβ2xγ3U=x1αx2βx3γ given the budget…

A: Given,  Logarithmic transform of the utility function : U=xα1xβ2xγ3U=x1αx2βx3γBudget Constraint :…

Q: ssume that a consumer has two goods to consume: medical care services (M) and all other goods (X).…

A: Budget line shows the two goods all possible combination which a consumer can buy with given level…

Q: U(x, y) = xayb A consumer maximises utility subject to a budget constraint M = Pxx+Pyy Where px is…

A:

Q: A consumer has an annual budget constraint for two goods: “housing sq. ft." and "$ for everything…

A: Given information Income=50000 Price of housing per square feet=200 Let's take Price of the other…

Q: If good X plotted on the x-axis, and good Y plotted on the y-axis, an increase in the price of good…

A: Budget constraint shows the amount of the two goods that can be purchased given their prices and…

Q: 1. Muhammad enjoys going to the aquarium (x) and playing basketball (y). His preferences on x and y…

A:

Q: Advertisement is one of the factors that influence customers to increase demand for a specific good.

A:

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.