Exam 1: Budget Constraint-Part A

Felicity is studying economics and political science.She can read 30 pages of political science per hour but only 5 pages of economics per hour.This week she has a 50-page assignment in economics and a 150-page assignment in political science.Because of sorority rush, she cannot devote more than 10 hours to studying these subjects this week.She realizes she cannot complete all of her assignments but is determined to complete at least 30 pages of her economics reading.Draw a graph with pages of economics on the horizontal axis and pages of political science on the vertical axis.On this graph, show the possibilities that are consistent with the constraints that Felicity has imposed on herself.(She is allowed to read ahead in either subject.)Label key points on your graph with their numerical values.

If she spends all of her income on uglifruits and breadfruits, Maria can just afford 11 uglifruits and 4 breadfruits per day.She could also use her entire budget to buy 3 uglifruits and 8 breadfruits per day.The price of uglifruits is 6 pesos each.How much is Maria's income per day?

Brenda likes hot dogs and Coca-Cola.Hot dogs cost $1 each and Cokes cost $.50 per bottle.There is a special promotion for Coke that will last for one month.If Brenda sends in the bottle tops from the Cokes she drinks during the next month, she will get a refund of $.20 for every bottlecap beyond the first 12 that she returns.For example, if she returns 25 bottle caps she will get back $2.60 = $.20 (25 - 12).Brenda has $40 to spend on hot dogs and Coke during the next month.Draw her budget line with Coke on the horizontal axis and hot dogs on the vertical axis.Find the points where the budget line hits the axes and the point where it has a kink.At each of these three points write down the quantities of each good consumed.

If she spends her entire budget, Heidi can afford 39 peaches and 12 pears.She can also just afford 24 peaches and 17 pears.The price of peaches is 9 cents.What is the price of pears in cents?

If there are two goods and the prices of both goods rise, then the budget line must become steeper.

Thomas consumes coffee (C)and doughnuts (D).His budget line was described by the equation D = 20 - 2C.At a later time, his budget line could be described by the equation D = 10 - C.The change between the earlier budget line and the later could be explained by the fact that

Quincy lives on pretzels and seafood salads.The price of pretzels is 1 dollar per bag and the price of seafood salads is 2 dollars each.Quincy allows himself to spend no more than 14 dollars a day on food.He also restricts his consumption to 3,400 calories per day.There are 600 calories in a bag of pretzels and 200 calories in a seafood salad.If he spends his entire money budget each day and consumes no more calories than his calorie limit, he can consume up to

If you spent your entire income, you could afford either 6 units of x and 13 units of y or 13 units of x and 6 units of y.If you spent your entire income on x, how many units of x could you buy?

If you spent your entire income, you could afford either 3 units of x and 9 units of y or 9 units of x and 3 units of y.If you spent your entire income on x, how many units of x could you buy?

If good 1 is on the horizontal axis and good 2 is on the vertical axis, then an increase in the price of good 1 will not change the horizontal intercept of the budget line.

Suppose that the prices of good x and good y both double and income triples.On a graph where the budget line is drawn with x on the horizontal axis and y on the vertical axis,

Will spends his entire income on 8 sacks of acorns and 8 crates of butternuts.The price of acorns is 9 dollars per sack and his income is 88 dollars.He can just afford a commodity bundle with A sacks of acorns and B crates of butternuts that satisfies the budget equation

If you have an income of $40 to spend, commodity 1 costs $4 per unit, and commodity 2 costs $8 per unit, then the equation for your budget line can be written

If you could exactly afford either 5 units of x and 21 units of y, or 9 units of x and 5 units of y, then if you spent all of your income on y, how many units of y could you buy?

Maria spends her entire budget and consumes 5 units of x and 6 units of y.The price of x is twice the price of y.Her income doubles and the price of y doubles, but the price of x stays the same.If she continues to buy 6 units of y, what is the largest number of units of x that she can afford?

Harry thrives on two goods, paperback novels and bananas.The cost of paperback novels is 4 dollars each and the cost of bananas is 3 dollars per bunch.If Harry spent all of his income on bananas, he could afford 12 bunches of bananas per week.How many paperback novels could he buy if he spent all of his income on paperback novels?

Ads in a slick business magazine are read by 300 lawyers and 1,000 M.B.A.s.Ads in a consumer publication are read by 250 lawyers and 300 M.B.A.s.If Harry had $3,000 to spend on advertising, the price of ads in the business magazine were $500, and the price of ads in the consumer magazine were $250, then the combinations of M.B.A.s and lawyers whom he could reach with his advertising budget would be represented by the integer values along a line segment that runs between the two points

Edmund must pay $6 each for punk rock video cassettes, V.If Edmund is paid $24 per sack for accepting garbage, G, and if his relatives send him an allowance of $48, then his budget line is described by the equation

In year 1, the price of good x was $3, the price of good y was $2, and income was $90.In year 2, the price of x was $9, the price of good y was $6, and income was $90.On a graph with x on the horizontal axis and y on the vertical, the new budget line is