The budget constraint.

Question

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Answer 1

Question

Chapter C, Problem 1QP

(a)

To determine

The budget constraint.

(a)

Expert Solution

Explanation of Solution

Since the income is $4,000 and price of good X is $50, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$4,000$50=80

Thus, the consumer will consume 80X.

Since the income is $4,000 and price of good Y is $100, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$4,000$100=40

Thus, the consumer will consume 40Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 1

In Figure 1, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

(b)

To determine

The budget constraint.

(b)

Expert Solution

Explanation of Solution

Since the income is $3,000 and price of good X is $25, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$3,000$25=120

Thus, the consumer will consume 120X.

Since the income is $3,000 and price of good Y is $200, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$3,000$200=15

Thus, the consumer will consume 15Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 2

In Figure 2, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

(c)

To determine

The budget constraint.

(c)

Expert Solution

Explanation of Solution

Since the income is $2,000 and price of good X is $40, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$2,000$40=50

Thus, the consumer will consume 50X.

Since the income is $2,000 and price of good Y is $150, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$2,000$150=13.33

Thus, the consumer will consume 13.33Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 3

In Figure 3, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

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Answer 2

Question

Chapter C, Problem 1QP

(a)

To determine

The budget constraint.

(a)

Expert Solution

Explanation of Solution

Since the income is $4,000 and price of good X is $50, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$4,000$50=80

Thus, the consumer will consume 80X.

Since the income is $4,000 and price of good Y is $100, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$4,000$100=40

Thus, the consumer will consume 40Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 1

In Figure 1, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

(b)

To determine

The budget constraint.

(b)

Expert Solution

Explanation of Solution

Since the income is $3,000 and price of good X is $25, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$3,000$25=120

Thus, the consumer will consume 120X.

Since the income is $3,000 and price of good Y is $200, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$3,000$200=15

Thus, the consumer will consume 15Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 2

In Figure 2, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

(c)

To determine

The budget constraint.

(c)

Expert Solution

Explanation of Solution

Since the income is $2,000 and price of good X is $40, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$2,000$40=50

Thus, the consumer will consume 50X.

Since the income is $2,000 and price of good Y is $150, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$2,000$150=13.33

Thus, the consumer will consume 13.33Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 3

In Figure 3, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter C, Problem 1QP

(a)

To determine

The budget constraint.

(a)

Expert Solution

Explanation of Solution

Since the income is $4,000 and price of good X is $50, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$4,000$50=80

Thus, the consumer will consume 80X.

Since the income is $4,000 and price of good Y is $100, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$4,000$100=40

Thus, the consumer will consume 40Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 1

In Figure 1, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

(b)

To determine

The budget constraint.

(b)

Expert Solution

Explanation of Solution

Since the income is $3,000 and price of good X is $25, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$3,000$25=120

Thus, the consumer will consume 120X.

Since the income is $3,000 and price of good Y is $200, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$3,000$200=15

Thus, the consumer will consume 15Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 2

In Figure 2, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

(c)

To determine

The budget constraint.

(c)

Expert Solution

Explanation of Solution

Since the income is $2,000 and price of good X is $40, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$2,000$40=50

Thus, the consumer will consume 50X.

Since the income is $2,000 and price of good Y is $150, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$2,000$150=13.33

Thus, the consumer will consume 13.33Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 3

In Figure 3, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter C, Problem 1QP

(a)

To determine

The budget constraint.

(a)

Expert Solution

Explanation of Solution

Since the income is $4,000 and price of good X is $50, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$4,000$50=80

Thus, the consumer will consume 80X.

Since the income is $4,000 and price of good Y is $100, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$4,000$100=40

Thus, the consumer will consume 40Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 1

In Figure 1, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

(b)

To determine

The budget constraint.

(b)

Expert Solution

Explanation of Solution

Since the income is $3,000 and price of good X is $25, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$3,000$25=120

Thus, the consumer will consume 120X.

Since the income is $3,000 and price of good Y is $200, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$3,000$200=15

Thus, the consumer will consume 15Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 2

In Figure 2, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

(c)

To determine

The budget constraint.

(c)

Expert Solution

Explanation of Solution

Since the income is $2,000 and price of good X is $40, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$2,000$40=50

Thus, the consumer will consume 50X.

Since the income is $2,000 and price of good Y is $150, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$2,000$150=13.33

Thus, the consumer will consume 13.33Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 3

In Figure 3, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter C, Problem 1QP

(a)

To determine

The budget constraint.

(a)

Expert Solution

Explanation of Solution

Since the income is $4,000 and price of good X is $50, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$4,000$50=80

Thus, the consumer will consume 80X.

Since the income is $4,000 and price of good Y is $100, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$4,000$100=40

Thus, the consumer will consume 40Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 1

In Figure 1, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

(b)

To determine

The budget constraint.

(b)

Expert Solution

Explanation of Solution

Since the income is $3,000 and price of good X is $25, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$3,000$25=120

Thus, the consumer will consume 120X.

Since the income is $3,000 and price of good Y is $200, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$3,000$200=15

Thus, the consumer will consume 15Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 2

In Figure 2, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

(c)

To determine

The budget constraint.

(c)

Expert Solution

Explanation of Solution

Since the income is $2,000 and price of good X is $40, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$2,000$40=50

Thus, the consumer will consume 50X.

Since the income is $2,000 and price of good Y is $150, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$2,000$150=13.33

Thus, the consumer will consume 13.33Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 3

In Figure 3, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

Answer 6

Chapter C, Problem 1QP

(a)

To determine

The budget constraint.

(a)

Expert Solution

Explanation of Solution

Since the income is $4,000 and price of good X is $50, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$4,000$50=80

Thus, the consumer will consume 80X.

Since the income is $4,000 and price of good Y is $100, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$4,000$100=40

Thus, the consumer will consume 40Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 1

In Figure 1, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

Answer 7

Chapter C, Problem 1QP

(a)

To determine

The budget constraint.

Answer 8

(a)

Expert Solution

Explanation of Solution

Since the income is $4,000 and price of good X is $50, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$4,000$50=80

Thus, the consumer will consume 80X.

Since the income is $4,000 and price of good Y is $100, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$4,000$100=40

Thus, the consumer will consume 40Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 1

In Figure 1, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

Answer 13

(b)

To determine

The budget constraint.

(b)

Expert Solution

Explanation of Solution

Since the income is $3,000 and price of good X is $25, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$3,000$25=120

Thus, the consumer will consume 120X.

Since the income is $3,000 and price of good Y is $200, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$3,000$200=15

Thus, the consumer will consume 15Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 2

In Figure 2, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

Answer 14

(b)

To determine

The budget constraint.

Answer 15

(b)

Expert Solution

Explanation of Solution

Since the income is $3,000 and price of good X is $25, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$3,000$25=120

Thus, the consumer will consume 120X.

Since the income is $3,000 and price of good Y is $200, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$3,000$200=15

Thus, the consumer will consume 15Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 2

In Figure 2, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Answer 16

(b)

Expert Solution

Answer 17

(b)

Expert Solution

Answer 18

Expert Solution

Answer 19

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

Answer 20

(c)

To determine

The budget constraint.

(c)

Expert Solution

Explanation of Solution

Since the income is $2,000 and price of good X is $40, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$2,000$40=50

Thus, the consumer will consume 50X.

Since the income is $2,000 and price of good Y is $150, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$2,000$150=13.33

Thus, the consumer will consume 13.33Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 3

In Figure 3, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.

Answer 21

(c)

To determine

The budget constraint.

Answer 22

(c)

Expert Solution

Explanation of Solution

Since the income is $2,000 and price of good X is $40, the quantity of good X can be calculated as follows:

Quantity of good X=IncomePrice of good X=$2,000$40=50

Thus, the consumer will consume 50X.

Since the income is $2,000 and price of good Y is $150, the quantity of good Y can be calculated as follows:

Quantity of good Y=IncomePrice of good Y=$2,000$150=13.33

Thus, the consumer will consume 13.33Y.

Now, the budget constraint can be represented as follows:

Microeconomics, Chapter C, Problem 1QP , additional homework tip 3

In Figure 3, the vertical axis measures the quantity of good Y and the horizontal axis measures the quantity of good X.

Answer 23

(c)

Expert Solution

Answer 24

(c)

Expert Solution

Answer 25

Expert Solution

Answer 26

Economics Concept Introduction

Budget constraints: Budget constraint refers to the possible combination of goods and services that a consumer can purchase at a given price level with the entire income.