Write the equation for her new budget constraint

Assignment Help Microeconomics
Reference no: EM132177173

Question: Maria has a $300 gift certificate at a spa that she can use on massages or manicures. A massage costs $100, and a manicure costs $30.

a. Write the equation for Maria's budget constraint. Let x 5 massages. Let y 5 manicures.

b. Suppose Maria decides to split her gift certificate with a friend and transfers half of the value of her gift certificate to her friend. Write the equation for her new budget constraint.

c. After giving away half of her gift certificate, suppose the price of massages increases by 50 percent before Maria can use her gift certificate. Write the equation for her new budget constraint.

Reference no: EM132177173

Questions Cloud

What is the project NPV : The firm's tax bracket is 35%, and the required rate of return on the project is 12%. Use the MACRS depreciation schedule. What is project NPV
What is the value of the call : Continuously compounded T-bills currently yield 2.58%. Suppose the current price of Ervin stock is $74. What is the value of the call
How many total trips can jordan take : Jordan visits her sister several times a year. Jordan's travel budget is $600, which she uses to buy bus tickets and train tickets.
In which case firms enjoy a larger profit margin : In which case firms enjoy a larger profit margin? Explain.
Write the equation for her new budget constraint : After giving away half of her gift certificate, suppose the price of massages increases by 50 percent before Maria can use her gift certificate.
What can you say about the quantity of each good : ment are normal goods, what can you say about the quantity of each good that Heather will purchase after the discount?
What are the drawbacks of method : Explain full cost pricing. What are the drawbacks of this method?
What can you say about the quantity of each good : Assuming that baseball and movie tickets are normal goods, what can you say about the quantity of each good that Hideki will consume.
What were the problems with globes marketing materials : Develop a timeline for the events from the time of the policy mailer. Why are Khalil’s arrest and previous counseling not required to be disclosed?

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the unemployment rate in funland

Given this information: What is the unemployment rate in Funland? Carry your answer to one place past the decimal. What is the frictional unemployment rate in Funland? Carry your answer to one place past the decimal

  Show how one can derive the change in market value of

show how one can derive the change in market value of equity as a function of adjusted duration gap asset size and

  What is the forward discount on pesos

The peso is the currency of Argentina. Suppose that the $/peso forward exchange rate, F, is exactly equal to traders' expectations for the value of the $/peso.

  Which schedule should the company accept

A forklift truck costs $29,000. A company agrees to purchase such a truck with the understanding that it will make a single payment for the balance due in.

  Revenue source for health care organizations

Governmental sources (public programs) and private payers are just a few examples regarding sources of health care revenue. Medicare, Medicaid, and managed-care programs are some types of payers that make up the revenue source for health care orga..

  Kaiser-permanente the nations largest health maintenance

kaiser-permanente the nations largest health maintenance organization was founded?ato provide cost-effective medical

  Herfendahl index ratio

An industry is composed of 20 firms, all with equal sales. The Herfendahl Index ratio in this industry is a. 1000 b. 500 c. 800 d. This cannot be determined from the information given.

  Though it costs 20 worth of labor to disassemble neon green

apple inc. has made a rare fashion miscalculation they have produced 8000 neon green ipods but have sold almost none.

  Explain the costs and the benfits of the policy

Why do you think your policy would work in reducing the total amount of emissions -

  What do we call the error of accepting a false hypothesis

What do we call the error of accepting a false hypothesis? Of rejecting a true hypothesis and What symbol is usually used for the probability of type I error? What is another name for this?

  Why do people hold their wealth in the form of money rather

why do people hold their wealth in the form of money rather than another asset that will provide a rate of return

  Explain integrated marketing communication (imc) program

List the four major areas (audience analysis; objectives and budget; issues; and research) and explain how an organization designs a program around these four influences.

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