Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 9, Problem 5SPA
To determine
The change in budget line.
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Last week Sara’s income was $12 a week. The price of popcorn was $3 a bag, and the price of a smoothie was $3.e. Draw a graph of Sara’s budget line with the quantity of smoothies on the x-axis.f. What is the slope of Sara’s budget line? What determines its value?
A consumer has income of $3,000. Wine costs $3 per glass, and cheese costs $6 per pound. Make a graph. Draw the consumer’s budget constraint with wine on the vertical axis. Make sure to label the axes.
The graph shows the budget line for a consumer who only
buys cookies and magazines. If the consumer's income is $20, what is the price of a cookie?
Cookies (number per week)
24
20
16
8
0
2
4
6
8 10 12
Magazines (number per week)
Chapter 9 Solutions
Microeconomics (13th Edition)
Ch. 9.1 - Prob. 1RQCh. 9.1 - Prob. 2RQCh. 9.1 - Prob. 3RQCh. 9.1 - Prob. 4RQCh. 9.1 - Prob. 5RQCh. 9.2 - Prob. 1RQCh. 9.2 - Prob. 2RQCh. 9.2 - Prob. 3RQCh. 9.2 - Prob. 4RQCh. 9.3 - Prob. 1RQ
Ch. 9.3 - Prob. 2RQCh. 9.3 - Prob. 3RQCh. 9.3 - Prob. 4RQCh. 9.3 - Prob. 5RQCh. 9 - Prob. 1SPACh. 9 - Prob. 2SPACh. 9 - Prob. 3SPACh. 9 - Prob. 4SPACh. 9 - Prob. 5SPACh. 9 - Prob. 6SPACh. 9 - Prob. 7SPACh. 9 - Prob. 8SPACh. 9 - Prob. 9SPACh. 9 - Prob. 10SPACh. 9 - Prob. 11SPACh. 9 - Prob. 12APACh. 9 - Prob. 13APACh. 9 - Prob. 14APACh. 9 - Prob. 15APACh. 9 - Prob. 16APACh. 9 - Prob. 17APACh. 9 - Prob. 18APACh. 9 - Prob. 19APACh. 9 - Prob. 20APACh. 9 - Prob. 21APACh. 9 - Prob. 22APACh. 9 - Prob. 23APACh. 9 - Prob. 24APACh. 9 - Prob. 25APACh. 9 - Prob. 26APACh. 9 - Prob. 27APACh. 9 - Prob. 28APACh. 9 - Prob. 29APACh. 9 - Prob. 30APA
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- Kim has $40 per week in her entertainment budget. She splits her time between going to the movies and yoga classes. Each movie costs $10 while each yoga class costs $5. Graph Kim’s budget constraint, with movies on the x-axis and yoga on the y-axis. What is the value of the x-intercept? What is the value of the y-intercept? What is the slope of this budget constraint?arrow_forwardRaymond consumes meatloaves and pineapples. He has decided that hismonthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. i. Draw a graph of Raymond’s budget line (meatloaf on the y axis). ii. Show how Raymond’s budget line changes if the price of pineapplesincreases to $370.arrow_forwarda) Suppose a consumer has a budget for fast-food items of $20 per week and spends this money on two goods, hamburgers and pizzas. Suppose hamburgers cost $5 each and pizzas cost $10. Put the quantity of hamburgers purchased per week on the horizontal axis and the quantity of pizzas purchased per week on the vertical axis. Draw the budget line. What is its slope (use MRS formula to calculate the slope)? b) Suppose the consumer in part (a) is indifferent among the combinations of hamburgers and pizzas shown. In the grid you used to draw the budget lines, draw an indifference curve passing through the combinations shown, and label the corresponding points A, B, and C. Label this curve I. Combinations Hamburgers/Week Pizzas/Week A 5 0 B 3 ½ C 0 3 c) The budget line is tangent to indifference curve, determine that point and explain the meaning of this tangency.arrow_forward
- The figure shows Laura's budget line. Laura buys only lilies (Y) and orchids (X). Lilies (number per month) 16- The price of a lily is $4 and the price of an orchid is $7. 14- Suppose Laura's income rises by $14 a month, the price of a lily increases by $6, and the price of an orchid remains the same. 12- What is the equation of Laura's new budget line? 10- ..... 8- The equation of Laura's new budget line is 6- O A. Y= 70- 3.0X O B. Y= 70 - 6.0X 4- O C. Y= 7-.7X 2- O D. Y= 7-1.43X Budget line 0- 10 Orchids (number per month)arrow_forwardMarie has a weekly budget of $2400, which she likes to spend on magazines and pies. If the price of one magazine is $40, what is the maximum number of magazines she can buy in a week? If the price of a pie is $120, what is the maximum number of pies she can buy in a week? Compute and show Marie’s budget schedule for pies and magazines. Draw Marie’s budget line with pies on the horizontal axis and magazines on the vertical axis.arrow_forwardHow does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?arrow_forward
- Amy has $12 to spend on coffee and soda. The price of coffee is $2 a cup, and soda is $1 a can. The graph below shows her budget line. 1. Can Amy buy 7 cans of soda and 2 cups of coffee a week? 2. Can she buy 7 cups of coffee and 2 cans of soda a week? 3.What happens to the new budget line if the price of soda increases to $3 a can.arrow_forwardSuppose the price of a candy bar is $1.25, the price of a bag of chips is $1.75, and the budget is $17.50. Candy Bars are on the x-axis and bags of chips are on the y-axis. If the price of a candy bar increases to $1.99, what happens to the Budget Line? Group of answer choices a)The budget lines rotates outward b)The budget lines rotates inward c)The budget line undergoes a parallel shift outward d)The budget lines undergoes a parallel shift inwardarrow_forwardSuppose a consumer has a budget for fast-food items of $60 per week and spends this money on two goods, hamburgers and pizzas. Suppose hamburgers cost $10 each and pizzas cost $20. Put the quantity of hamburgers purchased per month on the horizontal axis and the quantity of pizzas purchased per month on the vertical axis. Draw the budget line. What is its slope?arrow_forward
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