Would it make any sense for him to consume new combination

Assignment Help Business Economics
Reference no: EM131000487

The only two goods that give Bart utility are soap and calculators. When calculators cost $8 each and soap costs $2 per bar, his optimal consumption bundle is 8 bars of soap and 4 calculators. What is his income? Now the price of soap rises to $3 and the price of calculators falls to $6, so he can afford a combination of 10 soaps and 3 calculators if he so desires. Would it make any sense for him to consume this new combination? (: Draw a graph)

Reference no: EM131000487

Questions Cloud

Marginal utility and consuming at an optimum : Abe’s marginal utility of apples is 12 and his marginal utility of bananas is 5. If apples cost $2 each and bananas cost $1 each, is Ape consuming at an optimum? If not, which fruit should Ape consumes more of?
What is endowment point and budget line : Tom earns $15 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Tom faces a 20 percent tax rate and pays $4 per hour in child care expenses for each hour he works. What is Tom’s endowment point? In..
What are the cash payments for interest and for taxes : Is the direct or indirect method used to report operating activities? What is the largest adjustment to net income in reconciling net income and cash flows from operations in the most recent year?
Fundation of corporate finance theories : To evaluate the corporate finance concept of market efficiency, equity issuance and shareholders' wealth as well as supported by the foundation of corporate finance theories.
Would it make any sense for him to consume new combination : The only two goods that give Bart utility are soap and calculators. When calculators cost $8 each and soap costs $2 per bar, his optimal consumption bundle is 8 bars of soap and 4 calculators. What is his income? Now the price of soap rises to $3 and..
What is the average angular acceleration of the disk : The platter of a modern hard disk drive spins at 7.20x103 rpm (revolutions per minute). How much time, in seconds, does it take for the disk to make a complete revolution?
Draw a budget line : Let money income be $10 while the price of good 1 is $2 and the price of 2 is $1. Draw a budget line. Now draw the new budget lines according to each of the following changes in prices and income.
Describe the major components of a business model : Release your new product one year BEHIND the competition, but with 100% of the feature set you wanted.Which would you choose and why?
The two goods are right gloves and left gloves : Construct a representative indifference curve for the following cases: The two goods are right gloves and left gloves, and (1) the consumer has two hands; and (2) the consumer has only one (say left) hand.)

Reviews

Write a Review

Business Economics Questions & Answers

  The elasticity of variable G with respect to variable S

The elasticity of variable G with respect to variable S is defined as:

  What will be the price of a crepe at each stall

Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. CC estimates that on an average day there are 1,000 sunbathers evenly spread along the beach and that each sunbather wi..

  Qaccording to the agreement achieved by the administration

q.according to the agreement achieved by the administration and the congress were there a breach of the debt ceiling

  Standard of living of chinese people compared to those in us

China will almost certainly overtake the US in terms of GDP within a decade or so. What does that tell you about the standard of living of Chinese people compared to those in the US?

  European union increase the chance for brain drain

Reflect on the long term implications of high unemployment among the younger generations in Spain and Greece. In your opinion, does membership in the European Union increase the chance for brain drain?

  Discuss the sustainability of ethanol production from corn

Recently, when the cost of oil was ~$100/barrel the US made a significant investment in the form of tax breaks and subsidies to producers of ethanol to assist in the development of production of ethanol from biomass, including corn. Discuss the susta..

  Illustrate what is cost at which good is sold

Illustrate what is cost at which good is sold, domestic quantity supplied and demanded and quantity imported or exported.

  Define the nash equilibrium concept

What is the shadow price of labor when output is maximized subject to a labor constraint? In a perfectly competitive market, what curve can be drawn from the firm’s short run supply curve? When demand is perfectly elastic, what portion of costs from ..

  Are there wealth-creating transactions-information asymmetry

Suppose there are two types of people who need health insurance; high-risk and low-risk consumers. High-risk consumers have a relatively high probability of needing expensive medical care and on average incur $2,000 of medical expenses per year. Are ..

  Price of the product is less than the shut-down piece

What is the objective of the firm manager, and what is the criterion for determining the output level in each of the following cases: The price of the product is less than the shut-down piece?

  How many firms are in this industry

At the equilibrium market price, each firm produces 20 units. What is the equilibrium market price, and how many firms are in this industry?

  Why is it difficult for the government to control

What are problems that monopolies can cause, and why is it difficult for the government to control and regulate monopolistic enterprises?

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