User Account

All Pages

Price consumption curve for prices

Assignment Help Macroeconomics
Reference no: EM131211774

Suppose that Lynn enjoys coconut oil in her coffee.  She has very particular preferences, and she must have exactly two spoonfuls of coconut oil for each cup of coffee.  Let C be the number of cups of coffee, and O be the number of spoonfuls of coconut oil.  Also, let PC be the price of a cup of coffee.  Suppose Lynn has $12 to spend on coffee and coconut oil.  Also, the price of coconut oil is $.50 per spoonful.

a) Graph Lynn's Price Consumption Curve for prices, PC = $1, PC = $2, and PC = $3.  Please put the number of cups of coffee on the horizontal axis, and the number of spoonfuls of coconut oil on the vertical axis.  Be sure to label your graph carefully and accurately.

b) Graph Lynn's demand curve for coffee.  You may assume that both coconut oil and coffee are continuous variables so she can consume any amount of coffee and coconut oil that she could afford.  Be sure to label your graph carefully and accurately.

Reference no: EM131211774

Questions Cloud

Determine the correct balance of cash and cash equivalents : The controller of the Red Wing Corporation is in the process of preparing the company’s 2013 financial statements. She is trying to determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. Det..
Calculation of the federal gift tax : Summarize the operation of the federal gift tax and the calculation of the federal gift tax.
Draw the indifference curve that goes through that bundle : For each of the following situations, use a graph to indicate the given bundle and accurately draw the indifference curve that goes through that bundle.  Be sure to label you graph carefully and accurately.  In all cases put the amount of good X o..
Calculate the current value of the company stock : Tundra Corporation is interested in acquiring Cantrell Corporation. Cantrell has 20 million shares outstanding and a target capital structure consisting of 30 percent debt and 70 percent equity. Cantrell's debt interest rate is 8 percent. Calculate t..
Price consumption curve for prices : a) Graph Lynn's Price Consumption Curve for prices, PC = $1, PC = $2, and PC = $3.  Please put the number of cups of coffee on the horizontal axis, and the number of spoonfuls of coconut oil on the vertical axis.  Be sure to label your graph caref..
Computing the dft of a vector of length n : A circulant is an n × n matrix in which the rth row is the rth cyclic shift of the first row, 2 ≤ r ≤ n. When n is a prime, show that computing the DFT of a vector of length n is equivalent to multiplying by an (n - 1) × (n - 1) circulant.
What is the impact on financial statements : 1. What is the financial statement impact of issuing stock compared to issuing bonds? Explain how stock and bonds impact the calculation of debt-to-equity ratio. 2. If they issue preferred stock instead of common stock, what is the impact on financ..
Conduct an analysis of us homeland security policies : Conduct an analysis of one or more U.S. homeland security policies, to assess the ability of the policy or policies to counter the threat posed by the group profiled.
Terms of return on investment and residual income : Consider the following data, which relate to the two divisions of McIntyre Products: Division 1 Division 2 Total assets $68,300,000 $23,000,000 Noninterest-bearing current liabilities 4,470,000 2,270,000 NOPAT 12,200,000 5,970,000 Required rate of re..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Model of aggregate demand

Consider the following model of aggregate demand, in which there is no international trade, the price level is fixed, and the symbols are defined as in class (all dollar amounts in billions):

  Percentage of the population

The population of an island consists of 60 000 people, 35 000 of whom are females. The percentage of the population who are males is:

  What is role of financial markets

What is role of financial markets? - What effect do interest rates have on investment? Savings?  - Which types of securities have lower interest rates?

  Determine efficient levels of information in an organization

Transaction costs are inherent in the trade-off between risks and uncertainties. Propose how one can determine the efficient levels of information in an organization to justify taking risk over uncertainty.

  Suppose the government decides to decrease spending and

Suppose the government decides to decrease spending and increase taxes in an attempt to decrease its deficit. Is it possible for the Fed to ease the macroeconomic effects of the spending and tax changes? Explain

  Manner of evaluating fiscal growth

What is described as the most efficient manner of evaluating fiscal growth?

  Is the consumer maximizing her welfare

Suppose an individual's marginal rate of substitution is three slices of pizza for one beer at the present bundle of beer and pizza she is consuming. If the price of beer is $1.00 and the price of a slice of pizza is $1.50, is the consumer maximizing..

  Do you have frequently ended stock market rallies

Do you have frequently ended stock market rallies and led to declines in all major stock indexes.explain why rising oil prices have negatively impacted US equity markets.

  Differences affect legal structure accountability governance

The nonprofit organization in the United States differs from the for profit organization in several important ways. These differences affect the legal structure, accountability, governance, leadership, development and management functions of the ..

  A firm uses two inputs capital k and labor l in its

a firm uses two inputs capital k and labor l in its production process. capital and labor are perfect complements in

  Delivery of healthcare services

Explain the three types of incentives for providers for efficiency in the delivery of healthcare services. Explain who bears the financial risk-the provider, the patient, or the managed care organization.

  What is the effect on total checkable deposits in the econom

Suppose the reserve requirement (R) is 15%. What is the effect on total checkable deposits in the economy if bank reserves increase by $60 billion. Assume E=0

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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