Derive an equation for the budget constraint

Assignment Help Business Management
Reference no: EM131224521

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: EM131224521

Case in us trademark law jurisprudence

In a minimum of 500 words, explain the reasons why this decision was made, and discuss the significance of this case in U.S. trademark law jurisprudence -  Identify the main

Responsibility of working with organization ceo

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

Identify the structure that purvis currently has

Review the Purvis fact pattern and identify the structure that Purvis currently has. Identify the organizational structure. Does the structure fit the purpose of the company?

Opportunity cost for producing food

1. Which country has an absolute advantage in car production? Which country has an absolute advantage in food production? 2. For the American worker, what is their opportunit

Labor compensation as a fraction of output

Consider the continuous time version of the Solow growth model : Y (t) =K(t)α(A(t)L(t))1-α If capital share α increase, will the labor compensation as a fraction of output WL/

Improved oil extraction technologies

Oil production in the United States has increased significantly over the past decade as a result of improved oil extraction technologies, with some analysts predicting that

How can mr smith improve market share

What should Joe do? or How can Mr Smith improve market share? Usually the problem statement has to be re-written several times during the analysis of a case, as you peel bac

Additional utility does sheget from spending one

If Sally initially consumed 4 units of x and 12 units of y, how much additional utility does sheget from spending one (small fraction of a) dollar more on good x? How much a

Reviews

Write a Review

 
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