Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of $ 2 in gasoline money. He has a total of $ 1 0 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6 , figure out the points 011 Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 6, Problem 1SCQ

Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of $ 2 in gasoline money. He has a total of $ 1 0 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.

Chapter 6, Problem 1SCQ, Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can

Expert Solution & Answer

To determine

Using the values in given table, find out the points on Jeremy’s consumption choice budget constraint and identify his utility maximizing point?

Answer to Problem 1SCQ

The maximum total utility is 1120 on round 1 with 80 utility and 160 minutes of phone minutes within the given $10.

Explanation of Solution

It is given that Jeremy has total $10 to spend ,a round trips costs him $2 and phone calls costs $0.05 per minute. With the given money, he can either go for 5 round trips or no phone calls. second option is no round trips and 200 minutes of phone calls. there can be the combination of two in between. hence the budget constraint formulae is

Total amount=Price of round trips*Quantity of round trips+ Price of phone calls*Quantity of phone calls

A =P(r)*Q(r)+P(pc)*Q(pc)

$10=$2*Q(r)+$0.05*Q(pc)

dividing the whole equation by $0.05

$10/0.05=($2*Q(r)+$0.05*Q(pc))/0.05

200= 40*Q(r)+Q(pc)

Q(pc)=200-40*Q(r)

Hence with the given budget constraint and table, below table is constructed which shows zero to five round trips and how many phone minutes can be afforded with the given budget with total utility of each.

Economics Concept Introduction

Concept introduction:

Budget Constraint: It represent all the possible combination of goods and services that a consumer can purchase with the given prices and income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a round-trip cost of $2 in gasoline money. He has a total of $10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6,figureoutthepointsonJeremy’sconsumptionchoicebudgetconstraint(itmaybehelpfultodoasketch) and identify his utility-maximizing point. 3. Explain all the reasons why a decrease in a product's price would lead to an increase in purchases. 4. Asacollegestudentyouworkatapart-timejob,butyourparentsalsosendyouamonthly“allowance.” Suppose onemonthyourparentsforgottosendthecheck.Showgraphicallyhowyourbudgetconstraintisaffected.Assuming you only buy normal goods, what would happen to your purchases of goods?

You are in the market for a new couch and havefound two advertisements for the kind of couchyou want to buy. One seller notes in her ad that sheis selling because she is moving to a smaller apartment, and the couch won’t fit in the new space.The other seller says he is selling because the couchdoesn’t match his other furniture. Which seller doyou expect to buy from? Why? ( Hint: Think whowould be the more motivated seller.)

Donuts are a big thing in Portland, OR. You go into one of the many donut establishments to purchase some number of these tasty (and even vegan or gluten free if required) treats. Let's say that the first donut has higher utility for you, so you are willing to pay up to $2 for it. For the second donut you are willing to pay $1.50, the third $1, a fourth $0.50 and the fifth $0.00. This particular bakery in Portland charges an average of $1 per donut. If you are a rational buyer (which can be hard when faced with so many different delicious donuts) then how many donuts do you purchase, and how much consumer surplus (i.e., money saved compared to what you were willing to spend) do you have? O 4 donuts, $5 O 2 donuts, $5 O 3 donuts, $1.50 O 1 donut, $0.50

Answer 2

Textbook Question

Chapter 6, Problem 1SCQ

Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of $ 2 in gasoline money. He has a total of $ 1 0 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.

Chapter 6, Problem 1SCQ, Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can

Expert Solution & Answer

To determine

Using the values in given table, find out the points on Jeremy’s consumption choice budget constraint and identify his utility maximizing point?

Answer to Problem 1SCQ

The maximum total utility is 1120 on round 1 with 80 utility and 160 minutes of phone minutes within the given $10.

Explanation of Solution

It is given that Jeremy has total $10 to spend ,a round trips costs him $2 and phone calls costs $0.05 per minute. With the given money, he can either go for 5 round trips or no phone calls. second option is no round trips and 200 minutes of phone calls. there can be the combination of two in between. hence the budget constraint formulae is

Total amount=Price of round trips*Quantity of round trips+ Price of phone calls*Quantity of phone calls

A =P(r)*Q(r)+P(pc)*Q(pc)

$10=$2*Q(r)+$0.05*Q(pc)

dividing the whole equation by $0.05

$10/0.05=($2*Q(r)+$0.05*Q(pc))/0.05

200= 40*Q(r)+Q(pc)

Q(pc)=200-40*Q(r)

Hence with the given budget constraint and table, below table is constructed which shows zero to five round trips and how many phone minutes can be afforded with the given budget with total utility of each.

Economics Concept Introduction

Concept introduction:

Budget Constraint: It represent all the possible combination of goods and services that a consumer can purchase with the given prices and income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 6, Problem 1SCQ

Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of $ 2 in gasoline money. He has a total of $ 1 0 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.

Chapter 6, Problem 1SCQ, Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can

Expert Solution & Answer

To determine

Using the values in given table, find out the points on Jeremy’s consumption choice budget constraint and identify his utility maximizing point?

Answer to Problem 1SCQ

The maximum total utility is 1120 on round 1 with 80 utility and 160 minutes of phone minutes within the given $10.

Explanation of Solution

It is given that Jeremy has total $10 to spend ,a round trips costs him $2 and phone calls costs $0.05 per minute. With the given money, he can either go for 5 round trips or no phone calls. second option is no round trips and 200 minutes of phone calls. there can be the combination of two in between. hence the budget constraint formulae is

Total amount=Price of round trips*Quantity of round trips+ Price of phone calls*Quantity of phone calls

A =P(r)*Q(r)+P(pc)*Q(pc)

$10=$2*Q(r)+$0.05*Q(pc)

dividing the whole equation by $0.05

$10/0.05=($2*Q(r)+$0.05*Q(pc))/0.05

200= 40*Q(r)+Q(pc)

Q(pc)=200-40*Q(r)

Hence with the given budget constraint and table, below table is constructed which shows zero to five round trips and how many phone minutes can be afforded with the given budget with total utility of each.

Economics Concept Introduction

Concept introduction:

Budget Constraint: It represent all the possible combination of goods and services that a consumer can purchase with the given prices and income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 6, Problem 1SCQ

Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of $ 2 in gasoline money. He has a total of $ 1 0 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.

Chapter 6, Problem 1SCQ, Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can

Expert Solution & Answer

To determine

Using the values in given table, find out the points on Jeremy’s consumption choice budget constraint and identify his utility maximizing point?

Answer to Problem 1SCQ

The maximum total utility is 1120 on round 1 with 80 utility and 160 minutes of phone minutes within the given $10.

Explanation of Solution

It is given that Jeremy has total $10 to spend ,a round trips costs him $2 and phone calls costs $0.05 per minute. With the given money, he can either go for 5 round trips or no phone calls. second option is no round trips and 200 minutes of phone calls. there can be the combination of two in between. hence the budget constraint formulae is

Total amount=Price of round trips*Quantity of round trips+ Price of phone calls*Quantity of phone calls

A =P(r)*Q(r)+P(pc)*Q(pc)

$10=$2*Q(r)+$0.05*Q(pc)

dividing the whole equation by $0.05

$10/0.05=($2*Q(r)+$0.05*Q(pc))/0.05

200= 40*Q(r)+Q(pc)

Q(pc)=200-40*Q(r)

Hence with the given budget constraint and table, below table is constructed which shows zero to five round trips and how many phone minutes can be afforded with the given budget with total utility of each.

Economics Concept Introduction

Concept introduction:

Budget Constraint: It represent all the possible combination of goods and services that a consumer can purchase with the given prices and income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Using the values in given table, find out the points on Jeremy’s consumption choice budget constraint and identify his utility maximizing point?

Answer to Problem 1SCQ

The maximum total utility is 1120 on round 1 with 80 utility and 160 minutes of phone minutes within the given $10.

Explanation of Solution

It is given that Jeremy has total $10 to spend ,a round trips costs him $2 and phone calls costs $0.05 per minute. With the given money, he can either go for 5 round trips or no phone calls. second option is no round trips and 200 minutes of phone calls. there can be the combination of two in between. hence the budget constraint formulae is

Total amount=Price of round trips*Quantity of round trips+ Price of phone calls*Quantity of phone calls

A =P(r)*Q(r)+P(pc)*Q(pc)

$10=$2*Q(r)+$0.05*Q(pc)

dividing the whole equation by $0.05

$10/0.05=($2*Q(r)+$0.05*Q(pc))/0.05

200= 40*Q(r)+Q(pc)

Q(pc)=200-40*Q(r)

Hence with the given budget constraint and table, below table is constructed which shows zero to five round trips and how many phone minutes can be afforded with the given budget with total utility of each.

Economics Concept Introduction

Concept introduction:

Budget Constraint: It represent all the possible combination of goods and services that a consumer can purchase with the given prices and income.

Answer 8

Expert Solution & Answer

To determine

Using the values in given table, find out the points on Jeremy’s consumption choice budget constraint and identify his utility maximizing point?

Answer to Problem 1SCQ

The maximum total utility is 1120 on round 1 with 80 utility and 160 minutes of phone minutes within the given $10.

Explanation of Solution

It is given that Jeremy has total $10 to spend ,a round trips costs him $2 and phone calls costs $0.05 per minute. With the given money, he can either go for 5 round trips or no phone calls. second option is no round trips and 200 minutes of phone calls. there can be the combination of two in between. hence the budget constraint formulae is

Total amount=Price of round trips*Quantity of round trips+ Price of phone calls*Quantity of phone calls

A =P(r)*Q(r)+P(pc)*Q(pc)

$10=$2*Q(r)+$0.05*Q(pc)

dividing the whole equation by $0.05

$10/0.05=($2*Q(r)+$0.05*Q(pc))/0.05

200= 40*Q(r)+Q(pc)

Q(pc)=200-40*Q(r)

Hence with the given budget constraint and table, below table is constructed which shows zero to five round trips and how many phone minutes can be afforded with the given budget with total utility of each.

Economics Concept Introduction

Concept introduction:

Budget Constraint: It represent all the possible combination of goods and services that a consumer can purchase with the given prices and income.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Using the values in given table, find out the points on Jeremy’s consumption choice budget constraint and identify his utility maximizing point?

Answer 12

Answer to Problem 1SCQ

The maximum total utility is 1120 on round 1 with 80 utility and 160 minutes of phone minutes within the given $10.

Answer 13

Explanation of Solution

It is given that Jeremy has total $10 to spend ,a round trips costs him $2 and phone calls costs $0.05 per minute. With the given money, he can either go for 5 round trips or no phone calls. second option is no round trips and 200 minutes of phone calls. there can be the combination of two in between. hence the budget constraint formulae is

Total amount=Price of round trips*Quantity of round trips+ Price of phone calls*Quantity of phone calls

A =P(r)*Q(r)+P(pc)*Q(pc)

$10=$2*Q(r)+$0.05*Q(pc)

dividing the whole equation by $0.05

$10/0.05=($2*Q(r)+$0.05*Q(pc))/0.05

200= 40*Q(r)+Q(pc)

Q(pc)=200-40*Q(r)

Hence with the given budget constraint and table, below table is constructed which shows zero to five round trips and how many phone minutes can be afforded with the given budget with total utility of each.