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

Which form of investment has the most amount of risk involved?

Salsk061 [2.6K]

Is this supposed to be a multiple choice question? It is way fun to think about projects other people might be up to which carry outrageously high risk!

Restaurants are a common example -- there's a little bit of magic in whether a new restaurant will catch on and become popular.

Farming is pretty risky. You can do everything right and have a hail storm come and ruin the crops. That's why there are government programs and commodity markets that help farmers mitigate their risk -- because the rest of us who need to eat really need for people to be willing to farm!

8 0

4 years ago

Read 2 more answers

Which player in the economy supplies labor in the factor market?

djyliett [7]

The player in the economy that supplies labor in the factor market is households.

Economists refer to all of the resources that firms utilize to buy, rent, or hire the equipment they use to generate goods or services as the "factor market."

The factors of production—raw materials, land, labor, and capital—are what are required to meet these needs.

The input market is another name for the factor market.

By this definition, all markets fall into one of two categories: those that provide businesses with the resources they require, or those that provide consumers with the goods and services they need to make purchases.

The market for finished goods or services is referred to as an output market, whereas a factor market is referred to as an input market.

This can be seen as a closed-loop flow where households are sellers and businesses are buyers in the factor market and vice versa in the market for goods and services.

Hence, The player in the economy that supplies labor in the factor market is households.

Learn more about supply:

brainly.com/question/4804206

#SPJ1

5 0

2 years ago

Savvy consumers often purchase automobiles from dealerships at the end of the quarter or at year-end since dealers who meet thei

leonid [27]

Answer:

cumulative quantity discounts

Explanation:

Many customer’s purchase items and commodities at the end of the seasons because at year-end, the sellers, manufacturers and dealers offer various discounts to clear the inventory. Likewise, customers of savvy often buy commodities at the end of a quarter or a season to earn cumulative quantity discounts; it is a discount that is given to consumers who buy a specific amount of quality.

8 0

3 years ago

Target donates millions of dollars each year in education-related grants for arts and cultural experiences, field trips, and rea

melomori [17]

Answer:

Philanthropy

Explanation:

Target donates millions of dollars each year in education - related grants for arts and cultural experiences , field trips , and reading programs , as well as grants to promote public safety . This is an example of Philanthropy.

Philanthropy means giving things like money or any kind of gift to people for are need of that.

Philanthropy is good , it helps in solving the social problem .

There is a little difference is charity and Philanthropy , that is , Charity is short - term while Philanthropy is long - term. Charity tends to be emotional and have immediate response on the other hand philanthropy is more strategical .

Philanthropy always focuses on eliminating social problem.

8 0

3 years ago

Perhaps the greatest risk for a company that chooses to pursue an integrated low cost/differentiation strategy is that it will

Amiraneli [1.4K]

The greatest risk of a low-cost provider strategy is getting lost with overly high price reduction and ending up with lower profit.

<h3>Low-cost / low-price advantage </h3>

It results in high profit only if;

(1) prices are reduced by less than the size of the cost advantage or
(2) the added volume is large enough to bring in a bigger total profit despite lower margins per unit sold.

Therefore, the greatest risk is a low profit.

learn more on low cost strategy from here: brainly.com/question/5516605

6 0

2 years ago