All categories

2 years ago

Question 2

1 answer:

8 0

The price of coffee is =$4 and price of cake is = $5. so, the budget line is 4c+5k=40 where, c= coffee and k =cake If coffee is placed at x axis the cake on the y axis

a) Joe's budget constraint and draw a clearly labelled diagram to depict this information which is attached in the answer

b) The equation the budget constraint for Joe for his coffee (C) and

cake (K) consumption. His income is 10, the price of cake is $2 and

the price of coffee is $1.

Income= 1C + 2D

c) On the graph above with cake on the vertical axis and coffee of the

horizontal axis draw the budget line. Hint: figure out where the budget line hits

each axis (so if K is zero what is C, if C is zero what is K), then connect the

points. Label this BL1 on your graph and give the numbers where the budget line hits both axis.

The budget line is 10= 1C + 2K, see above graph for line. Note when K is zero, C is 10.

When C is zero K is 5. This tells us where the budget line hits the two axis.

C). Now the price of coffee goes up to $2, draw a second budget line on the graph

that reflects the price change. Label it BL2. You can use the same graph but make

sure you label your budget lines!

See above graph for line. BL2 is rotated in as only the price of coffee changes. The

budget line hits the K axis at the same spot and the line rotates in because Joe can now

buy less coffee with his $10.

II-Is he better or worse off now?

. Now Joe receives a pay raise and his income is now $15. The price of cake

and coffee is still $2 each. Draw a third budget line to reflect the income raise.

Label this BL3.

BL2 shifts out in a parallel fashion to BL3, see above graph so he is worse off condition.

Learn more about Budget brainly.com/question/15683430

#SPJ9

You might be interested in

An investor was looking at a sixteen-unit apartment building. Four of the units rented for $600, four for $750, four for $725, a

tankabanditka [31]

Answer:

$1,545,000

Explanation:

The formula to compute the cost of the building equal to

Rate of return = (Rental income - expenses) ÷ (cost of building )

where,

Rate of return = 8%

Rental income equals to

= ($600 × 4 units + $750 × 4 units + $725 × 4 units + $800 × 4 units) × 12 months

= $138,000

Total expense

= $1,200 × 12 month

= $14,400

Now the cost of building would be

8% = ($138,000 - $14,400) ÷ (cost of building )

8% = $123,600

So, the cost of building equal to $1,545,000

6 0

4 years ago

A supply chain management (SCM) system is an IT system that supports supply chain management activities by: a. helping decision

Evgen [1.6K]

Answer:

The correct answer is letter "B": automating the tracking of inventory and information among business processes and across companies .

Explanation:

Supply Chain Management (SCM) comprises all the steps companies take from gathering raw materials until the delivery of a final good to consumers. In the process, several resources are used such as Information Technology (IT) systems which allow measuring numerically materials, components, labor hand and hours, and the necessary resources for the manufacturing company given a period.

Besides, IT systems are useful to keep track of the flow of the units being produced when they hit the warehouse shelves and when they leave the company for sale. This information is useful for the plant and its suppliers.

3 0

4 years ago

You are going to make an investment of $1000, and are considering 2 options: Option one is a zero-coupon 5-year bond of a compan

Andrei [34K]

Answer:

a. What is the expected return of the risky corporate bond over the 5-year holding-period (in %)?

expected return in $ = (50% x 20% x $1,000 x 4) + (50% x 35% x $1,000 x 4) = $400 + $700 = $1,100

holding period return = ($1,100 - $1,000) / $1,000 = 10%

b. What is its effective annual return?

(1 + 10%)⁰°² - 1 = 1.92%

b. What is its effective annual return?

2. The government bond is the superior investment

The yield of he corporate bond is very low and the risk is too high.

8 0

3 years ago

A _______________ is a supply chain whose members act like a unified system.

Anvisha [2.4K]

Answer:

e. Vertical marketing system.

7 0

3 years ago

Adams Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Supreme Sales

vagabundo [1.1K]

Answer:

Expected contribution as per sales mix = $37*0.60 + $50*0.40

= $22.20 + $20

= $42.20 per unit

Total number of products in total at break even point = Total fixed cost / Contribution per unit

= $227,880 / $42.20 per unit

= 5,400 units

How many units each of Super and Supreme must Adams sell to break even?

According to sales mix:

Super = 5,400 * 60% = 3,240 units

Supreme = 5,400 * 40% = 2,160 units.

3 0

3 years ago