User Account

All Pages

What is the area under the new budget constraint

Assignment Help Microeconomics
Reference no: EM132473033

Mumi has $100 and is deciding how to spend it on bread and wine. The price of bread is $2 and the price of wine is $2. (Both goods are infinitely divisible.)

Now suppose the government wants consumers to conserve bread, so it changes the price of bread to $4 for each purchase of bread above 25. (For 25 or less units of bread, the original price of $2 is used.)

Draw the budget constraint. What is the area under the new budget constraint?

(Note: We don't ascribe any intuitive meaning to this value. It is just a way to check that you have constructed the constraint correctly.)

Reference no: EM132473033

Questions Cloud

Which factor explains this pattern of production and trade : However, each particular model or component is produced in only one of the two countries. Which factor explains this pattern of production and trade?
Discuss the trades common stock on the NYSE : Discuss the trades common stock on the NYSE. Please identify and describe the information that is included in the stock trading reports for that stock.
What are two marketing vehicles that may be appropriate : Thinking about that same facility, what are two marketing vehicles that may be appropriate for it? Do you believe that this unit has helped you learn more.
Difference between trade deflection and trade diversion : What is the difference between Trade deflection and trade diversion? And Trade Creation?
What is the area under the new budget constraint : Draw the budget constraint. What is the area under the new budget constraint?
What do we know about finlay spending : Suppose Finley spends $1,000 a year on food. The government now gives him $500 in food stamps.
Create a individual market view report : Create a Individual Market View Report. Do you think that exchange rates will go up or down in the next 3 to 6 months? Why do you think this?
Which foods in your recorded daily intake provide protein : Which foods in your recorded daily intake provide protein? Which provide carbohydrates? Which provide lipids? Review how your recorded protein, carbohydrate.
Determine physical inventory count : Sheffield uses a periodic inventory system. At the end of the year, a physical inventory count determined that there were 200 units on hand

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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