Budget constraint-each unit of clothing is half-price

Assignment Help Business Economics
Reference no: EM131004575

You have $100 to spend on food and clothing. The price of food is $5 and the price of clothing is $10. A. Graph your budget constraint. B. Suppose that the government subsidizes clothing such that each unit of clothing is half - price, up to the first five units of clothing. Graph your budget constraint in this circumstance

Reference no: EM131004575

Questions Cloud

Different consumption bundles until their marginal utility : For utility maximization, consumers will purchase different consumption bundles until their marginal utility per dollar are equal. So, when the marginal utility of beef is 10 at price of $5 per lb and the marginal utility of chicken is 8 at price of ..
Forgetting the leap years and making convenient assumption : How much money must be invested in an account that pays 6% per year interest to be worth $20000 at the end of 8 years of (forgetting the leap years and making "convenient" assumptions) : annually
What would happen to her hours of leisure consumed : Mary has two sources of income, let her non - labor income be represented by V dollars per year. He r labor income comes from working h hours per year in the labor market at wage rate of w per hour. L (priced at w per hour). Illustrate the impact of ..
Budget constraint-each unit of clothing is half-price : You have $100 to spend on food and clothing. The price of food is $5 and the price of clothing is $10. A. Graph your budget constraint. B. Suppose that the government subsidizes clothing such that each unit of clothing is half - price, up to the firs..
Diminishing marginal rate of substitution : Which assumption about consumer preferences leads to diminishing marginal rate of substitution (MRS) as we move along from left to right on a typical Indifference curve.
In the neo-classical model of labor-leisure : In the neo - classical model of labor - leisure choice, the representative consumer receives satisfaction from consumption of goods (C) and from the consumption of Leisure (L). Let C be the composite good with price $1 and L determines the number of ..
High energy and action orientation relational power : Based on your knowledge of Ms. Ursula Burns, which of the 12qualities (( Vision Superb, Communication skills, Self-confidence and Moral Conviction, Ability to Inspire, Trust High Risk Orientation, High Energy and Action Orientation Relational Power B..
Changes in prices of food-clothing and medical care : According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..

Reviews

Write a Review

Business Economics Questions & Answers

  Social security and unemployment compensation

Explain whether transfer payments, such as Social Security and unemployment compensation, are counted as government spending in calculating GDP.

  Financed the expenditure with special-purpose bonds

The City of Arlington Texas spent approximately $325 million on the new Dallas Cowboys stadium which opened in 2009. The city financed the expenditure with special-purpose bonds anticipated to cost approximately $21 million per year to service. What ..

  Suppose the quantity of good x demanded by individual 1 is

suppose the quantity of good x demanded by individual 1 is given by x1 10 ?? 2px 001i1 04py and the quantity of x

  Examine how the federal reserve controls the money supply

Examine how the Federal Reserve controls the money supply. In a paper, formulate how the independence of the Federal Reserve should or should not be modified in any way.

  How much interest is payable each year

How much interest is payable each year on a loan of $1000 if the interest rate is 9% per year when half of the loan principal will be repaid as a lump sum at the end of 3 years and the other half will be repaid in one lump-sum amount at the end of 6 ..

  Appropriate analysis period for problem

There are two choices for replacing a punch press. The basic model has a useful life of 8 years while the deluxe model has a useful life of 12 years. Whats the most appropriate analysis period for this problem?

  Explain why lean manufacturing requires a stable demand

Explain why lean manufacturing requires a stable demand environment. Describe how success to successful system archetype works. What should be done about it.

  What are the dangers of increasing the money supply

What trade-offs does the Federal Reserve consider when deciding how rapidly or how slowly to increase the U.S. money supply? What are the dangers of increasing the money supply too slowly? Too rapidly? What factors make it difficult to predict the gr..

  Qsuppose samcom sell 3500 books on account for 11 each cost

q.suppose sam.com sell 3500 books on account for 11 each cost these book is 16500 on october 10 2012. one hundred of

  What was unemployment rate and employment rate

(All numbers in the thousands) In May 2015, the civilian non-institutional population was 250,455. The number of employed workers was 148,795. The number of unemployed workers was 8,674. The number not in the labor force is 92,986. What was the unemp..

  What is the projects external rate of return

Improved tooling for numerical control machinery will cost $9,693, last 6 years, and have no salvage value at that time. Due to this investment, net income will increase by $2525 during the first 3 years and by $3840 during each of the remaining 3 ye..

  Cost to consumers and businesses

The best use of scarce resources paid for at the minimum level of cost to consumers and businesses

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd