What happens to antonio budget line

Assignment Help Microeconomics
Reference no: EM13321501

Debra usually buys a soft drink when she goes to a movie theater, where she has a choice of three sizes: the 8-ounce drink costs $1.50,the 12-ounce drink $2.00, and the 16-ounce drink $2.25.Describe the budget constraint that Debra faces when deciding how many ounces of the drink to purchase. (Assume that Debra can costlessly dispose of any of the soft drink that she does not want.) 5410. Antonio buys five new college textbooks during his first year at school at a cost of $80 each.

Used books cost only $50 each. When the bookstore announces that there will be a 10 percent increase in the price of new books and a 5 percent increase in the price of used books, Antonio"s father offers him $40 extra.

a. What happens to Antonio"s budget line? Illustrate the change with new books on the vertical axis.

b. Is Antonio worse or better off after the price change? Explain.

Reference no: EM13321501

Questions Cloud

Explain what is the theoretical yield in grams of c2h2 : CaC2 + 2 H2O --> Ca(OH)2 + C2H2 If 100. g of CaC2 and 100. g H2O are mixed, what is the theoretical yield (in grams) of C2H2 that can be produced
Find the angle of refraction in the air : A light ray passes from water into air. The angle of incidence is 37o. Find the angle of refraction in the air
Anne has a job that requires her to travel three out of ever : Anne has a job that requires her to travel three out of every four weeks. She has an annual travel budget and can travel either by train or by plane. The airline on which she typically flies has a frequent-traveler program that reduces the cost of he..
Determine what is the internal tensile stress with beam : If a concrete beam with a f'c=4000psi experiences a drop in temperature of 30 Degrees F, What is the internal tensile stress. Will the concrete crack. What could i do to prevent cracking.
What happens to antonio budget line : Debra usually buys a soft drink when she goes to a movie theater, where she has a choice of three sizes: the 8-ounce drink costs $1.50,the 12-ounce drink $2.00, and the 16-ounce drink $2.25.Describe the budget constraint that Debra faces when decidin..
Explain condition required for the reactions to occur : Write equations for the folowing seperations. indicate any condition required for the reactions to occur, such as p.H 5. Fe2+ from Cr3+ ions
How much work was done on the crate by friction : If the crate was at rest at the top of the incline and has a speed of 2.20m/s at the bottom, how much work Wf was done on the crate by friction
Identification in the initial phase of project life cycle : The main objective of this assignment is to reinforce the importance of project definition and needs identification in the initial phase of the project life cycle. Success of a project is affected by the way a project's objective(s) is defined, plann..
Ben allocates his lunch budget between two goods : Consumers in Georgia pay twice as much for avocados as they do for peaches. However, avocados and peaches are the same price in California

Reviews

Write a Review

Microeconomics Questions & Answers

  Discuss the model or economic theory

Conduct a meta-analysis of the author's economic perspective of the issue, provide a brief overview / synopsis of the issue and discuss the model or economic theory that relates to the issue presented in the news article.

  The amount consumers spend on health care

One way to reduce the amount consumers spend on health care is to raise the price of health care by increasing the health insurance copayment

  The federal reserve announces it is increasing the discount

Explain whether each of the following is an example of a macroeconomic concern or a microeconomic concern.

  Which country is running a trade deficit

Suppose there are three countries in the world. Country A exports $11 million worth of goods to country B and $5 million worth of goods to counrty C, country B exports $3 million worth of goods to country A and $6 million worth of goods to counrty..

  How many workers should the firm hire each hour

A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output and each hour of labor produces five units of output. For L number of workers hired each hour and w hourly wage rate, the firm faces an upward- sloped labor..

  Research bubble and outline the basics of extraordinary time

Individual investors lost millions and the NASDAQ (the stock exchange for most Internet companies) came tumbling down. What happened? Why did it happen? What could have been done to stop this unsafe surge in valuation?

  Who made those resources available and why

What motivated the producers of those individual products to make them and offer them for sale How did the producers decide on the best combinations of resources to use Who made those resources available and why

  Define average total cos

profit = (quantity of output) x (price - average total cost), marginal revenue = (change in total revenue)/(quantity of output).

  Find that optimal amount

Suppose the price of c increases to 2, while income remains constant and what happens to the consumption of c and h? Are c and h substitute goods, complementary goods, or neither?

  Discuss rationale behind the principle of increasing cost

Microeconomics BACC107,  In the study of Microeconomic, the question "How to produce" is one of the basic economic problems (BEPs). Using an example, discuss this concept. In your discussion, you must also discuss the rationale behind the principle o..

  What number of drivers appears to be most efficient

What number of drivers appears to be most efficient in terms of output per driver and what number of drivers appears to minimize the marginal cost of transportation assuming that all drivers are paid the same salary?

  What does to the supply or demand of loanable funds

State what, if anything, each of the following does to the supply or demand of loanable funds and to net capital outflows. Draw a complete and fully-labeled diagram of the loanable funds market and net capital outflows to illustrate

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd