Question 1:
The price of a DVDs (D) is $20 and the price of a CDs (C) is $10. Philip has
a budget of $100 to spend on these two goods. Suppose that he has already bought one DVD and one CD. In addition, there are 3 more DVDs and 5 more CDs that he wouldreally like to buy.
a. Given the above prices and income, draw his budget line on a graph with CDs on
the horizontal axis.
b. Considering what he has already purchased and what he still wants to purchase,identify the three different bundles of CDs and DVDs that he could choose.
Assume that he cannot purchase fractional units.
Question 2:
Antonio buys five new college textbooks during his first year at school at a
price of $80 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 gives him an additional $40.
a. What happens to Antonio’s budget line? Illustrate this change with new books on the vertical axis.
b. Is Antonio better or worse off after the price change? Explain.
Econ Assignment..Please
2010-01-15 7:35 pm
回答 (2)
2010-02-18 7:35 pm
This is Samuel Khou, the author of all the suggested answers. These answers were supplied more than one year ago.
Apparently this person did a cut and paste and transfer my work on to this box. Please remove it accordingly. The answers are not relevant to the question.
Apparently this person did a cut and paste and transfer my work on to this box. Please remove it accordingly. The answers are not relevant to the question.
2010-01-24 8:08 pm
Q1:
A. vertical axis (DVD): 100/20=5
horizontal axis(CD):100/10=10
=> the vertical intercept is 5, and the horizontal intercept is 10. The budget line
is a straight line connecting both intercepts.
B. Use the equation:
20 DVD+10 CD=100
=> for the 4 DVD:
80+10CD=100
CD=2
(4 DVDs & 2CDs)
=>for 6 CD
20 DVD+60=100
DVD=2
(6CDs & 2 DVDs)
=> Plug in whatever for CD & calculate DVD
Q2:
A. Before change:
origan budget: 5 X 80=400
New textbook price: 80 (1.1)=88
Old textbook price: Po(1.05)
New budget: 440
Change w/ new book:
(1) from 5 to 400/88
(2) a outward shift of the budget line
B. In terms of buying new books ==> same
In terms of old books==> worse off
since Before change, he can buy 400/Po old books and after change, he can only buy 400/(1.05Po) old books.
Hopes that helps
A. vertical axis (DVD): 100/20=5
horizontal axis(CD):100/10=10
=> the vertical intercept is 5, and the horizontal intercept is 10. The budget line
is a straight line connecting both intercepts.
B. Use the equation:
20 DVD+10 CD=100
=> for the 4 DVD:
80+10CD=100
CD=2
(4 DVDs & 2CDs)
=>for 6 CD
20 DVD+60=100
DVD=2
(6CDs & 2 DVDs)
=> Plug in whatever for CD & calculate DVD
Q2:
A. Before change:
origan budget: 5 X 80=400
New textbook price: 80 (1.1)=88
Old textbook price: Po(1.05)
New budget: 440
Change w/ new book:
(1) from 5 to 400/88
(2) a outward shift of the budget line
B. In terms of buying new books ==> same
In terms of old books==> worse off
since Before change, he can buy 400/Po old books and after change, he can only buy 400/(1.05Po) old books.
Hopes that helps
參考: 自己
收錄日期: 2021-04-29 22:27:08
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