If rudy spends 10 per day on these goods draw a, Ask an Expert

Economics

Rudy spends all of his income on two goods: cokes and cigarettes. He consumes them in fixed proportions, 2 cigarettes/coke. Suppose cokes cost $1/can and cigarettes are $0.50 each.

a. If Rudy spends $10 per day on these goods, draw a utility/budget constraint graph to show his optimal consumption amounts.

b. How would your answer change if cokes now cost $1.50/can.

c. find out his elasticity of demand for coke. (arc or mp formula)

d. What income would be necessary to purchase the original bundle in part a?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M970732

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question 1 according to alaskan state economist mark

Question: 1. According to Alaskan state economist Mark Edwards, the multiplier effect of Alaska's trade with Japan is such that for every $1 billion exported from Alaska to Japan another $600 million is added to the stat ...

Question you work as a researcher at an active equity fund

Question: You work as a researcher at an active equity fund. Your supervisor makes the following statement to you. "Eugene Fama and Robert Shiller won the Nobel Prize in Economics in 2013. Their views on market efficienc ...

Question over the period from 1979 through 1989

Question: Over the period from 1979 through 1989, manufacturing employment fell by 1.6 million, while in the previous decade it had risen 0.9 million, yet service sector employment rose 19.3 million, compared to 17.3 mil ...

Question in 20013 the bush administration directed the

Question: In 2001.3, the Bush Administration directed the Treasury to send checks of $300 to $600 to most taxpayers as an ‘‘advance'' payment on the 2002 tax reduction, in order to pull the economy out of recession. The ...

Question paper details a 5-7 page including cover and

Question: Paper Details: A 5-7 page (including cover and reference pages so about 3-5 of actual writing) research paper APA style, 12 pt font double spaced. You must cite at least 2 sources that are from peer-reviewed ar ...

Question 1it costs a company 35000 to produce 700 graphing

Question: 1. It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculator ...

Question - liquidity premium hypothesis based on economists

Question - Liquidity Premium Hypothesis Based on economists' forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: R1 = 6.70% E(r2) = 7.80% L2 ...

Question jones and smith have a contract that will produce

Question: Jones and Smith have a contract that will produce $100 in benefits for each of them if they both carry out their duties under it. If Jones breaches the contract, he will create $140 in benefits for himself, and ...

Quesiton mobile social networking is the next frontier in

Quesiton: Mobile social networking is the next frontier in technology as companies race to adapt platforms like Facebook to our cell phones. 1. What do you see as the opportunities and the threats as we inevitably move t ...

Question a newscaster interviewed a senator about a

Question: A newscaster interviewed a senator about a proposed fence along the Mexican border. He said not to build it because some illegal entrants would still manage to climb it or cut through it. Assume for now that th ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert