MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
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Chapter 3, Problem 4TY
To determine
To graph: the
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Use the table with data for Maria and Jose to answer the question.
Table: Maria and Jose Produce Strawberry Jam
Jose charges $8 per
jar.
Maria charges $8 per Maria earns $200, and | Maria earns $50, and
Jose earns $180.
Jose charges $4 per jar.
Jose earns $280.
jar.
Maria charges $4 per
jar.
If Jose charges $8, Maria should charge
Maria earns $300, and Maria earns $180, and
Jose earns $40.
Jose earns $150.
If Jose charges $4, Maria should charge
$8; $8
$4; $4
$8; $4
O $4; $8
Use the table with data for Maria and Jose to answer the
question.
Table: Maria and Jose Produce Strawberry Jam
Jose charges $8 per
jar.
Jose charges $4 per jar.
Maria charges $8 per
jar.
Maria charges $4 per
jar.
Maria earns $200, and Maria earns $50, and
Jose earns $180.
| Maria earns $300, and | Maria earns $180, and
Jose earns $40.
Jose earns $280.
Jose earns $150.
If Jose charges $8, then Maria's best price would be
and
she would earn
$4; $180
O $4; $300
O $8; $200
$8; $50
Marie has a weekly budget of $24. Pie's are $12 each. Magazines are $4 each. What is Marie's opportunity cost of purchasing a pie?
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- Janice really likes potatoes. Potatoes cost $1.00 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? b. What if she only had $3.00 to spend?arrow_forwardlearn-eu-central-1-prod-fleet01-xythos.content.blackboardcdn.com Imagine there is an outbreak of 'mad sheep' disease, which wipes out a considerable portion of the sheep population in Scotland. This results in a shortage of Haggis and an increase in its price. a) Show the effect of this price increase on Angus' budget line and optimal choice, and explain the forces underpinning this outcome. (Hint: Consider substitution and income effects). b) Assuming that Haggis' price continues to increase over the subsequent months, derive the demand curve for Haggis. c) Discuss the income and substitution effects within the context of this price increase assuming that Haggis is an inferior good. 2 26% 1arrow_forwardThe below table shows production points on Sweet-Tooth Land's production possibilities frontier. Which of the following statements is TRUE? B) Producing a combination of 20 chocolate bars and 80 cans of cola is attainable but inefficient. A) Producing a combination of 0 chocolate bars and 100 cans of cola is both attainable and efficient. D) Producing a combination of 40 chocolate bars and 0 cans of cola is unattainable and inefficient. C) Producing a combination of 30 chocolate bars and 38 cans of cola is only attainable with an increase in technology.arrow_forward
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