1. (5 points) See file uploaded for full paper information with Graphs. If have any questions feel free to ask. A consumer is at equilibrium at point A in the accompanying figure. The price of good X

1. (5 points) See file uploaded for full paper information with Graphs. If have any questions feel free to ask.

Don't use plagiarized sources. Get Your Custom Essay on
1. (5 points) See file uploaded for full paper information with Graphs. If have any questions feel free to ask. A consumer is at equilibrium at point A in the accompanying figure. The price of good X
Just from \$13/Page

A consumer is at equilibrium at point A in the accompanying figure. The price of good X is \$20.

(a) What is the price of good Y?

(b) What is the total income (expenditure) of the consumer?

(c) At point A, how many units of Good X is the consumer purchasing?

(d) If the consumer spends his entire income on good X, how much of X will he consume?

(e) Suppose that the budget line changes so that the consumer is at a new equilibrium at point

B. What change could have led to the rotation of the budget line in the manner shown above? Please explain.

2. (5 points) A stockholder named Sue must cast a vote for chair of the board. Sue prefers Mr. Lee to Ms. Doe, Ms. Doe to Mr. James, and Mr. James to Mr. Lee.

(a) Are Sue’s preferences consistent with the transitive property? Please explain. (b) If all three candidates, Mr. Lee, Ms. Doe, and Mr. James are on the ballot at the same time,

who would Sue vote for? Please explain.

3. (5 points) In the above figure a consumer is initially at equilibrium at point C. The consumer’s income is \$400, and the budget line through point C is given by \$400 = 100X 200Y. When the consumer is given a \$100 gift certificate that is good only for product X, she moves to a new equilibrium point at point D.

(a) What are the prices of X and Y?

(b) How many units of product X will be purchased at point B? Please explain.

(c) How many units of Product X will be purchased at point F? Please explain.

(d) Please rank the bundles of goods A, B, C, D, from least preferred to most preferred (from

lowest utility or satisfaction to highest utility of satisfaction).

4. (5 points) Suppose an individual’s marginal rate of substitution is three slices of pizza for one beer at the present bundle of beer and pizza she is consuming. If the price of beer is \$1.00 and the price of a slice of pizza is \$1.50, is the consumer maximizing her welfare? If not, how should she change her consumption?

5. (5 points) Suppose a consumer derives satisfaction from consuming hamburgers and hot dogs. Graph the budget line of the consumer under the assumption that he is offered a “buy two, get one free” deal for hot dogs (limit one free hot dog). Please label and make a graph.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.