Find max number of sq ft of housing he can purchase given

Assignment Help Microeconomics

Reference no: EM13389798

Jordan is a college student who receives a stipend of $1000 a month. He uses the stipend to pay rent for housing and to go to the movies. (Assume all other expenses have been paid). Each square foot of rental housing is $1.50/month. Each movie he sees is $10. (Think of sq ft. housing as x1 and movies as x2)

a) what is the expression for Jordan's budget constraint

b) draw a graph of the budget constraint

c) what is the max number of sq ft of housing he can purchase given the stipend?

d) What is the max number of movies he could buy?

e) If the price of movies increases to $12 and price of rental increases to $2 per sq ft, what happens to the budget constraint? Draw this new budget constraint on your graph.

Reference no: EM13389798

Questions Cloud

Given the corporate ethical breaches in recent times : many organizations have been in the news over the past few years due to accounting ethical breaches that have affected

Find out how many new clients should visit law office for : don masters and two of his colleagues are considering opening a law office in a large metropolitan area that would make

Compute the total cost and the average total cost and add : you are the owner of a small bread factory and are thinking of lowering costs and expanding. your small-business

Write some of the challenges experienced by governments : many experts assert that globalization has essentially made us less independent and more closely connected to other

Find max number of sq ft of housing he can purchase given : jordan is a college student who receives a stipend of 1000 a month. he uses the stipend to pay rent for housing and to

Assume youre a cpa and your client has requested advice : tax-planning client letter on irrevocable trusts gift tax and estate taxsuppose you are a cpa and your client has

How is organization dealing with any of the given drivers : the new business enviroment how is the organization dealing with any of the following drivers of the new business

It is the responsibility of management to apply accounting : it is the responsibility of management to apply accounting standards when communicating with investors and creditors

Consider the market where supply and demand are given by : consider a market where supply and demand are given by qxs -10 px and qxd 56 - 2px. suppose the government imposes a

User Account

All Pages