Derive an equation for the budget constraint

Assignment Help Business Management
Reference no: EM131222800

Suppose that Tiffany has an income of $20 per week and she spends it on frozen pizza (P) and beer (B).The price of a bottle of beer (PB) is $1 and the price of frozen pizza (Pp) is $5 per pizza.

(a) Derive an equation for the budget constraint.

(b) Draw the budget constraint with beer on the horizontal axis and pizza on the vertical axis. Clearly indicate the x and y intercepts.

(c) What is the slope of the budget constraint?

(d) On a separate graph, draw the budget constraint when the price of beer increases to $2 per bottle.What happens to the slope of the budget constraint compared to your answer in Part (c)

(e) On a separate graph, draw the budget constraint when Tiffany's income falls to $15 per week (assume that the price of beer is again $1 per bottle). What happens to the slope of the budget constraint compared to your answer in Part(c)?

Reference no: EM131222800

Questions Cloud

Discuss neurotransmitter excitation and inhibition : Define neurotransmitters, and describe how they do their jobs. Discuss neurotransmitter excitation and inhibition.
Kink in the budget constraint : Draw the budget constraint where chocolate bars are on the vertical axis and ice-cream cones are on the horizontal axis. Clearly indicate at what quantities will there be a kink in the budget constraint
Calculate the manufacturing overhead costs incurred : The following information relates Nickel Company for 2015: Calculate the manufacturing overhead costs incurred during 2015
Write an essay about the effects of an environmental problem : Write an essay about The effects of an environmental problem. At least four sources must be acquired through the databases subscribed to by UMUC's Information and Library Services.
Derive an equation for the budget constraint : Suppose that Tiffany has an income of $20 per week and she spends it on frozen pizza (P) and beer (B).The price of a bottle of beer (PB) is $1 and the price of frozen pizza (Pp) is $5 per pizza. (a) Derive an equation for the budget constraint.
Is there anything wrong with this reasoning : Is there anything wrong with this reasoning? Discuss what is right and wrong with this conclusion.
Describe what was the hypothesis or hypotheses being studied : Identify and describe what research method(s) was used - observations in a lab, natural observations, surveys, case study, correlational study, experiment etc.?
Analysis of the current market conditions : You have been given the responsibility of working with your organization's CEO to do a competitive market analysis of the potential success of one of their existing products. Select your organization and a product produced by that organization fro..
Trade or business expense : Which of the following is not a "trade or business" expense? Cole purchased a car for business and personal use. In 2014, he used the car 60% for business (13,000 total use miles) and used the standard mileage rate to calculate his vehicle expenses. ..

Reviews

Write a Review

Business Management Questions & Answers

  Explain what is a sentinel event in healthcare delivery

Explain What is a sentinel event in healthcare delivery and What actions must any accredited healthcare facility take when a sentinel event occurs? Provide some specific examples of sentinel events.

  Duffman accomplishes that the total amount of money

Duffman accomplishes that the total amount of money spent buying beer has to fall since the price of beer is lower. Is he correct? Why or why not?

  Leaders creating strong culture in organizationscan you

leaders creating strong culture in organizationscan you discuss the following 2 questions in apa format and cite

  Insurance policy or the amount reimbursed by employer

True/False; In case of deductions for medical treatment under Section 80DDB the amount of deduction will be reduced by the amount received under an insurance policy or the amount reimbursed by the employer.

  Identify an organization that involve in changeable practice

Identify an organization within your community that engages in sustainable practices and Develop five open-ended questions to ask a key person in your selected organization about its sustainable practices

  Characteristic of heterogeneity change

Does the service characteristic of heterogeneity change once a service is placed on the web? Please explain.

  Components of a business model

There are four components of a business model: Core Strategy, Strategic Resources, Partnership Network, and Customer interface. Which component of the business model do you feel gave Tata Motors, its real competitive edge

  Piping company ships its only pump to national hydraulics co

Overland delays five more days before returning the pump. Mit files suit against overland, asking for compensatory and consequential damages. Will Mit recover? Explain.

  Explain what will that do to competitors in other countries

Explain What will that do to competitors in other countries and Should foreign companies do more uniting with U.S. companies themselves.

  Define the difference between a transformational leader

Define the difference between a Transformational and Charismatic leader. Give an instance of a current or past leader that exemplifies each kind of leadership style and describe why they fit this style.

  Answer of these three below questions related to the case

answer of these three below questions related to the case harvard business school case study- montefiore medical

  Explain what is the average customer time in the system

The Bijou Theatre in Hermosa Beach, California shows vintage movies. Customers reach at the theatre line at the rate of 100 per hour. The ticket seller be around 30 seconds per customer,

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