What is the slope of the budget line

Assignment Help Other Subject

Reference no: EM132844508

Question: Suppose Ben has a monthly income of $8,000 which he allocates between two goods rock cake and sodas. The price of a soda is $100 and the price of a rock cake is $150

I. Graph Ben's budget line with soda on the horizontal axis.

II. What is the slope of the budget line?

III. If the marginal utility for the last unit of soda is 500 units and that of rock cake is 400 units. What should Ben do to maximize his utility

Reference no: EM132844508

Questions Cloud

Prepare an income statement for ElectroWizard : Its tax rate is 40%. There are 100,000 common shares outstanding. Prepare an income statement for ElectroWizard in good form (include EPS)

Research a court case that involves the fourth amendment : Research a court case that involves the Fourth Amendment and the police authority to perform searches. Provide an overview of the case, discuss the purpose.

How much the project have to generate in the bad scenario : Consider a project that has an initial investment cost of $1.5 million. How much would the project have to generate in the bad scenario for the project

Why your company cannot donate to back-to-school program : Write a letter to the leader of the church explaining why your company cannot donate to the back-to-school program. Just a page and no reference need it.

What is the slope of the budget line : What is the slope of the budget line? If the marginal utility for the last unit of soda is 500 units and that of rock cake is 400 units. What should Ben do to.

Find the probability that the total production : Find the probability that the total production for the next 20 days will between 16 and 17 million pounds.

Should Al Harbi follow his boss directive : Fahad Al Harbi, to increase the estimate of bad debt expense and warranty costs in order to keep profits at $475,000. Should Al Harbi follow his boss directive

How government intervention affects the supply and demand : Supply and Demand Equilibrium: Describe how government intervention affects the supply and demand equilibrium. Refer to the simulation game to explain your.

Find correlation coefficient-coefficient of determination : Compute the correlation coefficient and Coefficient of Determination. Then draw a conclusion corresponding to each of your results.

User Account

All Pages