Ask Question, Ask an Expert


Ask Microeconomics Expert

1. Assume a person has $8.00 to spend only on apples and bananas. Apples cost $.40 each, and bananas cost $.10 each.

a) lf this person purchases only apples, how many can be bought?

b) If this person purchases only bananas, how many can be bought?

c) If the person were to purchase 10 apples, how many bananas could be bought with funds left over?

d) If person consumes one less apple (that is, nine), how many more bananas could be bought? ls this rate of trade-off the same no matter how many apples are relinquished?

e) prepare down algebraic equation for this person's budget constraint, and graph it showing points mentioned in parts a through d (using graph paper might improve the accuracy of your work).

2. Assume person faced with budget constraint described in problem 1 has preferences for apples (A) and bananas (B) given by

Utility =√A.B

a) If A = 5 and B = 80, what will utility be?

b) If A = 10, what value for B will give same utility as in part a?

c) If A = 2.0, what value for B will give the same utility as in parts a and b? -

d) Graph the indifference curve implied by parts a through c.

e) Given budget constraint from problem 1 which of points identified in parts a through c can be bought by this person?

f) Illustrate through some exs that every other way of assigning income provides less utility than does point identified in part b. Graph this utility-maximizing situation.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M923119

Have any Question? 

Related Questions in Microeconomics

How would a low-cost price leader enforce its leadership

How would a low-cost price leader enforce its leadership through implied threats to a rival? How does a firm become a "low cost" price leader? Discuss the specific type of market structure that implied threat strategy ca ...

Assignmentconcepts you should knowa organisational

Assignment Concepts you should know: a. Organisational Structure b. Physical structure of organisations c. Bureaucracy d. Organic versus Mechanistic organisational structures e. Symbolic conditioning f. Routine and impro ...

1 black-scholes pde show that the black-scholes price for a

1. Black-Scholes PDE: Show that the Black-Scholes price for a European Put with strike K and expiration T P(t; S t ) = Ke -r(T- t) Φ(-d 2 (T - t, S t )) - S t Φ(-d 1 (T - t, S t )), where d 1 (T - t, S t ) = (log{S t /K} ...

Microeonomicsassignment supply and demand conceptsas an

Microeonomics Assignment: Supply and Demand Concepts As an economist for ABC Plastics, your boss has asked you to respond to some questions she has regarding the company's main product, tablet cases. A marketing research ...

Case analysis instructionsnoteyou will need to get approval


From the e-activity analyze the elasticity of demand for

From the e-Activity, analyze the elasticity of demand for products within the selected industry relevant to Katrina's Candies. Determine the factors involved in making decisions about pricing these products that you beli ...

Question - determined that the cost of supplies on hand was

Question - Determined that the cost of supplies on hand was Tk. 1500 and Tk. 1200 of supplies had been used during the month.

Success and failurethink about the causes of success and

Success and Failure Think about the causes of success and failure for particular movements. What causes some to become widely appealing and have major impacts on change? What causes others (regardless of the validity of ...

Diagnostic assessmentsat its core a diagnostic assessment

Diagnostic Assessments "At its core, a diagnostic assessment is a detailed investigation of children's strengths and skill gaps that permits targeted intervention." (Howard, V. F., & Aiken, E., 2015, p. 282). Informal di ...

Answer all of the following questions in microsoft word

Answer all of the following questions in Microsoft Word file with complete questions and answers and attach it. 1. Consider the markets for e-books, e-readers (e.g. kindle), and physical copies of books. For each of the ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate