What is the slope of the budget constraint

Assignment Help Business Economics
Reference no: EM131381514

You arrive on campus at the beginning of the academic year with $450 to spend on textbooks and food. The price of a textbook is uniformly $90 and the price of a meal is always $15. Your parents made a deal with you: if you spend $270 of your own money on textbooks, your parents will split the cost of any additional textbooks with you.

a. Draw your budget constraint. Label the y- and x- intercepts. (Put food on x-axis.)

b. At what point does your budget constraint "kink"? What is the slope of the budget constraint to the left and right of the kink point?

c. Draw an indifference map showing that with your parents' subsidy, you buys 5 books and 6 meals, but that without the subsidy, you would have purchased 4 textbooks and 6 meals.

Reference no: EM131381514

Questions Cloud

Market equilibrium price for a visit to the doctor : Assume market equilibrium price for a visit to the doctor is currently $75. The federal government decides that something fishy is going on and mandates a price ceiling of $81. This means no doctor may charge more than $81 for a visit. What wil..
Why one county may be more disaster resilient than the other : Describe the community capitals available and why one county may be more disaster resilient than the other. Identify any sub-groups that were absent from the SoVI that you feel should be included to help determine risk and vulnerability.
Estimate this difference with a confidence interval : Is there evidence that men are more likely than women to make online purchases of books? Test an appropriate hypothesis and state your conclusion in context.
Develop job task analysis and define job descriptions : Please remember to give your work a title and that you must start with an "Introduction" summarizing past submissions and then link them with current submission. Example: "In modules one and two, I discussed the organizational structure of my prop..
What is the slope of the budget constraint : a. Draw your budget constraint. Label the y- and x- intercepts. (Put food on x-axis.) b. At what point does your budget constraint "kink"? What is the slope of the budget constraint to the left and right of the kink point? c. Draw an indifference ..
Is this evidence of a real age-based difference : Computer gaming. Who plays online or electronic games? A survey in 2006 found that 69% of 223 boys aged 12-14 said they "played computer or console games like Xbox or PlayStation . . . or games online." Of 248 boys aged 15-17, only 62% played thes..
And explain how ems will further benefit your organization : Explain how an EMS will assist your organization comply with environmental laws. Explain how an EMS will assist your organization reduce liability exposures and explain how the EMS will further benefit your organization.
Aquatic adaptation for science class : Need aquatic adaptation for my science class. Would you mind sparing one for me
Evaluate the relevant costs for the expansion decision : ECO 550- From the scenario for Katrina's Candies, determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs.

Reviews

Write a Review

Business Economics Questions & Answers

  What is the firms optimal capital-labor ratio

Suppose a firm’s production function is: f(E,K) = 40K0.25E0.75 The corresponding marginal product functions are: MPK = 10K-0.75E0.75 and MPE = 30K0.25E-0.25 Suppose initially that the hourly wage is $9 and the price of each unit of capital is $15. If..

  Consumer price index as a measure of the cost of living

In 1970, Lyle bought a hand calculator for $200. The calculator was more accurate in its four functions of addition, subtraction, multiplication, and division than was Lyle’s $35 slide rule. In 1990, Lyle could not buy a calculator, which could only ..

  About between local telephone service-long distance service

Do you think there are economies of scope between long distance and local telephone service? How about between local telephone service and long distance service? What difference do economies of scope make for the optimal regulatory policy?

  The price of wholesale milk dropped

The price of wholesale milk dropped by 30.3%, when the Pennsylvania Milk Marketing Board lowered the regulated price. The price to consumers fell by less than 30% in Philadelphia. Why? A maker of specialty soaps supplies a unique soap made from cactu..

  Factory farming and other food-production methods

Critics of agribusiness allege that industrialized, large-scale food production poses harm to consumer health as well as the environment. Proponents of agribusiness contend that factory farming and other food-production methods are vital in feeding a..

  What is market interest rate

A lump sum of $5.2 million in the first year. Assume the market interest rate will be 6% for all these years.

  The theory of public choice suggests

The theory of public choice suggests that

  Explain how will my family''s consumption of omelets change

Explain how will my family's consumption of omelets change this week and why. Chickens by the way do not respond to published prices in their decision as to lay eggs.

  Produce commemorative t-shirts for campus

A business employing 8 workers to produce commemorative t-shirts for campus events organizations.

  What would be the total effect on the economy of action

Assume that the MPC=0.6 for every consumer in the economy. You have just received a tax cut of $20000. How this action by the government will affect your spending plans? What would be the total effect on the economy of this action? (Assume that t=0, ..

  Suppose the price level and value

Suppose the price level and value of the U.S. dollar in year one are 1 and $1, respectively. If the price level rises to 1.20 in year two, what is the new value of the dollar?

  Define business as printing books instead of empowering

By defining its business as printing books instead of empowering imaginations, a children's book publishing company would more than likely experience.

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