User Account

All Pages

Will billie be better off

Assignment Help Macroeconomics
Reference no: EM131095041

Ben enjoys coffee (C) and tea (T) according to the function U = (C, T) = c+t . The price of coffee is $2 and the price of tea is $1.

  1. If Ben's income is $4, how much coffee and tea will she buy? Draw a graph of Billie's indifference curves and budget constraint in this situation and show how to use the graph to answer this question. 
  2. Now suppose the price of coffee drops to $1. Will Billie be better off?  How much coffee and tea will she buy now?  What does the diagram now look like?

Reference no: EM131095041

Questions Cloud

Individual case assignment in lieu of the original group : And answer the attached questions in an essay only 1 ½ page. This is your individual case assignment in lieu of the original group case assignment. Your point of reference for this assignment will be Case 11-1: The Right to Contract Out, found in ..
Analyze relationship of group to its past and current role : Write a 300 word paper that includes an in-depth historical analysis of The Chicago Outfit. Specifically analyze the relationship of your group to its past and to its current role in political corruption.
Temporary increase and decrease in technology : Explain how it can be analytically sensible to have a temporary increase/decrease in technology. Explain under which conditions/assumptions this would be very difficult to assert.
Economic factors that affect the business environment : Examine geographic and economic factors that affect the business environment of China when introducing Agricultural products in that country. Can i have some details about this topic?
Will billie be better off : Now suppose the price of coffee drops to $1. Will Billie be better off?  How much coffee and tea will she buy now?  What does the diagram now look like?
Write down the isocost equation for the restaurant : A fast food restaurant currently pays $5 per hour for servers and $50 per hour to rent ovens and other kitchen machinery. The restaurant uses seven hours of server time per unit of machinery time. Write down the isocost equation for the restaurant.
Economies of scope exhibits : “Economies of scope” exhibits when the joint cost of producing two or more goods is less than the sum of the separate costs. One of the examples is the oil refinery using the exhausted heat to cogenerate electric power. Please provide one more exampl..
What is the nature of their business : Sue and Meg have begun operating a house cleaning service for the purpose of earning enough money to travel to Europe. After six months, they had saved enough for their trip, so they stopped operating their business. What is the nature of their busin..
Calculate the velocity a spherical rain drop would achieve : Take the size across of the drop to be 4 mm, the density to be , and the surface area to be .

Reviews

Write a Review

Macroeconomics Questions & Answers

  Describe the point price elasticity of demand

Describe the point price elasticity of demand. What is the new point price elasticity if price is raised.

  Calculate the externality imposed

a) If the decision is made based on majority voting, what is the outcome? b) Determine if each of Ben, Jill or Lisa is pivotal in the sense that her/his presence or absence will affect the (optimal) outcome. c) Calculate the externality imposed by ..

  The simple interest for buying a passenger transit rail

A taxi driver plans to pick you up at the airport and drop you off at the bank so you can complete some financial transaction before you head home. He notes that the change in vehicle operating cost (VOC) is 42 cents per mile. Given that his fuel con..

  What will happen to the price of planes

What will happen to the price of planes, to sales, and to profits when Airbus comes out with a new plane?

  Elasticity of demand for your parking lot space

Suppose your elasticity of demand for your parking lot space is -2, and price is $8 per day. if your Mc is zero, and your capacity is 80% full at 9 A.M, over the last month, are you optimizing?

  Show how to find equilibrium in an rc model

Show how to find equilibrium in an RC model? What is the relationship between the marginal rate of substitution between leisure and labor and the marginal product of labor in the RC model.

  Appropriate transportation model

The problem that must be addressed is the distribution of land used for each country so as to meet global needs and simultaneously minimize the total labor costs. Design and resolve the appropriate transportation model.

  Subject to approval by the insurance company adjuster

In December, year 1 Sid's Body Shop (an accrual-basis taxpayer) did repair work on Lisa's car and was to be paid $2,000 by her insurance company.

  What implicit weight is placed on the inflation target

What implicit weight is placed on the inflation target under this rule? Discuss. Draw an IS-MP diagram but instead of the usual MP curve, graph the monetary policy rule.

  Conditions-skill levels of people in particular different

What are non-profitable organizations that work to improve the image, working conditions and skill levels of people in particular different occupations?

  Price of peanut butter increases

1. What will happen to the equilibrium price and quantity for jelly when the price of peanut butter increases? (Assume that peanut butter and jelly are typically consumed together).

  What coordination n control problem would company encounter

Would warehouse operators insist on owning their own trucking companies Why or why not What coordination and control problems and contractual hazards would these companies encounter What organizational form would warehouse operators

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