Draw the consumers budget constraint

Reference no: EM13673365

Suppose a consumer has preferences that satisfy A1-A4(all 4 of our axioms of consumer choice). The consumer's income is $100. The price of good x is Px=10 for the first 5 units of x and is Px=5 for the any additional units of x above 5. The price of good y is Py =10 for the first 5 units of y and is Py=5 for the any additional units of y above 5.

1)Draw the consumers budget constraint
2)Is it possible for this consumer to have multiple utility maximizing bundles? If yes sketch a possible indifference curves demonstrating this. If not, explain why.

Reference no: EM13673365

Questions Cloud

A velodrome track is banked so that a bicycle traveling : A velodrome track is banked so that a bicycle traveling at 71.2 km/h will have no tendency to slip to either side when traveling on the path that has a radius of curvature of 84.0 m. What is the banking angle?

Periphery of the wheel moves with a constant speed : Through 0.23 s, a wheel rotates through an angle of 2.98 rad as a point on the periphery of the wheel moves with a constant speed of 2.27 m/s. What is the radius of the wheel?

Consider a simple macro model with demand : Consider a simple macro model with demand-determined output. Which of the following parameters will produce the strongest automatic stabilizer?

Circles in a plane perpendicular to a uniform magnetic field : An electron with kinetic energy 4.60 keV circles in a plane perpendicular to a uniform magnetic field. The orbit radius is 50.0 cm. Discover the following values The speed of the electron

Draw the consumers budget constraint : Draw the consumers budget constraint

How can you graphically show an increase in labor : How can you graphically show an increase in labor supply with a perfectly elastic labor supply curve?

Two firm case and multi firm case : Two firm case and multi firm case.

Resistor and a capacitor are connected in series : A 20.0 k resistor and a capacitor are connected in series and then a 16.0 V potential dissimilarity is suddenly applied across them. The potential dissimilarity across the capacitor rises to 10.0 V in1.45 µs. Compute the time constant of the circuit...

Firms are identical and different : Under what conditions are cournot and bertrand equilibria the same? You may assume the market demand is p = a - bQ. Consider when firms are identical and different. If not, please explain why.

User Account

All Pages