Draw jim''s budget line,

Draw jim''s budget line

Assignment Help Econometrics

Reference no: EM131323809

Jim spends most of his time in Jazzman's, a coffee shop in south Bethlehem, Pennsylvania. Jim has $12 a week to spend on coffee and muffins. Jazzman's sells muffins for $2 each and coffee for $1.20 per cup. He consumes cups of coffee per week and muffins per week.

a. Draw Jim's budget line.

b. Now Jazzman's introduces a frequent-buyer card: For every five cups of coffee purchased at the regular price of $1.20 per cup, Jim receives a free sixth cup. Draw Jim's new budget line.

c. Does the introduction of the frequent-buyer card necessarily encourage Jim to consume more coffee? Show how your answer depends on Jim's preference map.

d. Use a budget line-indifference curve map analysis to explain which pricing scheme Jim prefers. V

Reference no: EM131323809

Questions Cloud

How does a business leader recognize if an intended change : How does a business leader recognize if an intended change is not a good idea? Have you been involved in a change initiative that was doomed from the beginning?

Express the temperature numerically in degrees celsius : 1. When H2 gas was released by the reaction of HCl with Zn, the volume of H2 collected was 66.0 mL at 26 °C and 750 mmHg. A. What is the volume of the H2 at 0 °C and 1.00 atm pressure (STP)? 2. Express the temperature numerically in degrees Celsius.

What are arguments in favor of continuing government support : What are some arguments in favor of continuing government support of Citigroup? Discuss who would be hurt by the bank's failure. Is the failure of Citigroup different from that of other firms?

Brønsted-lowry acid or a brønsted-lowry base : 1. Perchloric acid is either a Brønsted-Lowry acid or a Brønsted-Lowry base. If it is an acid, what is it's conjugate base? On the other hand, if it is a base what is it's conjugate acid?

Draw jim''s budget line : http://www.transtutors.com/questions/jim-spends-most-of-his-time-in-jazzman-s-a-coffee-shop-in-south-bethlehem-pennsylvan-2055758.htm

Gives a brief description of the selected manuscript : Provide a brief description of the selected manuscript. Identify the selection criteria and methods, and discuss how they relate to the needs of the organization in the case.

Develop assessment tool for professionals to use with client : BSHS 465- Develop assessment tool for professionals to use with clients. I would like the true/false assessment. come up with 10 questions that discuss variety of human services professionals knowledge, skills, and experience regarding multicultur..

Total sample volume : A sample of O2 was collected over water at 25C and .865 atm. If the total sample volume was 2.538 L, how many moles of O2 were collected?

Should robert not be hired because of his wifes illness : Should all of the workers absorb the group's increasing costs equally? Should smokers be encouraged to quit with incentives, or be punished for smoking by increased premiums? Should Robert not be hired because of his wife's illness?

User Account

All Pages