Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 9.1, Problem 4RQ
To determine
The impact of change in the price of a good on the relative price and slope of the budget line.
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Chapter 9 Solutions
Macroeconomics
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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- If the price of one good changes, what happens to the relative price and the slope of the household’s budget line?arrow_forwarda. Which graph shows a change in the price of X, but no changes in the price of Y and in the buyer's budget?Which graph shows a change in the buyer's income, but no changes in the prices of X and Y?Which graph shows an increase in the price of Y and a decrease in the price of X?arrow_forwardIf butter is the product, what happens when the price of magarine goes up?arrow_forward
- If the price of good X increases, what will happen to the budget line? It will shift outward It will become steeper It will become flatter It will shift inwardarrow_forwardWhat is your reflections about law of diminishing marginal utility, law of demand and law of supply?arrow_forwardgiven that Tebogo's income is P1800, price of food is P30 and price of intertainment is P40. draw Tebogo's budget line. using a diagram show what would happen to Tebogo's budget line if the price of food decreases to 20 while the price of entertainment remain the same using a digram show what would happen to Tebogo's buget line if income increases from P1800 to P2100 while prices remain P30 for food and P40 for entertainmentarrow_forward
- When the price of raspberries increases, consumers may switch to strawberries or blueberries. What effect is responsible for this switch?arrow_forwardThe graph shows Esther's best affordable point at A. The price of seeing a movie falls and Esther's new best affordable point is C. Draw a budget line that isolates the substitution effect. Label it B3. Draw a point to indicate where Esther consumes if she faces the budget line you've drawn. Label it B. What is Esther's substitution effect and income effect? For Esther, the substitution effect is the movement from movement from A. point C to point B; point B to point A B. point A to point B; point B to point C C. point A to point C; point C to point B D. point B to point C; point C to point A and the income effect is the C 8- 6- 4- 2- 0- Magazines (per month) 0 A 2 B₁ с 12 4 6 Movies (per month) >>> Draw only the objects specified in the question. B₂ 8arrow_forwardHow is equilibrium determined in goods market?arrow_forward
- Use this information to answer the following 4 questions: Marie has a weekly budget of $24,which she likes to spend on magazines and pies.24. If the price of a magazine is $4 each, what is the maximum number of magazines she couldbuy in a week?25. If the price of a pie is $12, what is the maximum number of pies she could buy in a week?26. Draw Marie’s budget constraint with pies on the horizontal axis and magazines on thevertical axis. What is the slope of the budget constraint?27. What is Marie’s opportunity cost of purchasing a pie? I need help with number 26 and 27.arrow_forwardAkram spends all of his income on food and clothing. When the price of clothing decreases, he buys more clothing.a. Does the substitution effect cause him to buy more or less clothing? Explain.arrow_forwardIf the consumer is consuming exactly two goods, and she is always spending all of her money, can both of them be inferior goods?arrow_forward
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