Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 13.A, Problem 2IAPA
To determine
To compute:
The quantities of latte and e book that can be bought by Mr. M and the marginal rate of substitution of e-books for lattes at the point of consumption.
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Jamani earns a weekly income of $6000. Suppose he wishes to spend this income on two goods, games and DVDs only. A game costs $200 while a DVDcosts $600.
Draw Jamani’s budget line. Putting games on the Y axis. ii. Suppose his income increases to $9000 per week, illustrate what happens to her budget line.iii. Suppose the price of games increase to $600, while his income and the price of DVDs is unchanged from part (i).
The total utility schedule of Sharon is given below for the number of shoes she consumes.
Calculate Sharon’s marginal utility schedule.
Plot a graph of total and marginal utility.
What is the maximum number of shoes that Sharon will consume? Explain
Number of Shoes
Total Utility
Marginal Utility
1
100
2
200
3
275
4
325
5
350
6
360
7
360
8
355
Hafidh's income is $200 a month. The price of watch is $25 a show, and the price of a Jeans is
$15.
a) Calculate the equation for Hafidh's budget line
b) Draw a graph of Hafidh's budget line with the quantity of Watches on the x-axis.
c) If Hafidh's income increased from S200 to 350S. Explain and show how Hafidh's
budget line changes with watches on the x-axis.
Chapter 13 Solutions
Foundations of Economics (8th Edition)
Ch. 13.A - Prob. 1SPPACh. 13.A - Prob. 2SPPACh. 13.A - Prob. 3SPPACh. 13.A - Prob. 4SPPACh. 13.A - Prob. 5SPPACh. 13.A - Prob. 1IAPACh. 13.A - Prob. 2IAPACh. 13.A - Prob. 3IAPACh. 13.A - Prob. 4IAPACh. 13 - Prob. 1SPPA
Ch. 13 - Prob. 2SPPACh. 13 - Prob. 3SPPACh. 13 - Prob. 4SPPACh. 13 - Prob. 5SPPACh. 13 - Prob. 6SPPACh. 13 - Prob. 7SPPACh. 13 - Prob. 8SPPACh. 13 - Prob. 9SPPACh. 13 - Prob. 10SPPACh. 13 - Prob. 1IAPACh. 13 - Prob. 2IAPACh. 13 - Prob. 3IAPACh. 13 - Prob. 4IAPACh. 13 - Prob. 5IAPACh. 13 - Prob. 6IAPACh. 13 - Prob. 7IAPACh. 13 - Prob. 8IAPACh. 13 - Prob. 9IAPACh. 13 - Prob. 10IAPACh. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQ
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