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1. Jim buys only milk and biscuits.
(a) In 2004, Jim earns $100, milk costs $2, biscuits cost $4 per dozen. Draw Jim's budget constraint
(b) Now suppose that all prices increase by 10% in the year 2005 and that Jim's salary increases by 10% as well. Draw Jim's new budget constraint. How would Jim's optimum combination of milk and biscuits in 2005 compare with his optimum combination in 2004.
(c) Would your answer to part (b) change if Jim's salary didn't change? Why?
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Do you anyone on staff with the above experience? Notes cannot be copied from any real company''s financial report.
Assignments with the answer for tafe sa 4 edition. Question 11, page 76 and question 39, page 89
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Suppose that Oxford Inc. is interested in the two new products, AME and CGK. Because of its capital budget constraint, it can only launch one new product line. Eric just graduated
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