1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex
3 years ago
15

Over the past decade, medical costs have increased more rapidly than other prices. In order to illustrate how rising medical cos

ts have affected consumer alternatives, let X represent the number of medical services, and let Y represent the number of other goods. Furthermore, let income (M) be measured in hundreds of dollars, the price of medical services and other goods in terms of dollars per minute, with M = 100, Px = 4, and Py = 5.
a. Graph the budget line, and determine the market rate of substitution.
b. Illustrate the budget set.
c. Show in your graph what happens to the budget constraint if Px increases to $10.
d. What is the meaning of the slope of the two budget constraints?
Business
1 answer:
bulgar [2K]3 years ago
5 0

Answer:

Budget Line is the graphical representation of goods combinations, which a consumer can buy - given prices & income (spending all income)

Equation : X.Px + Y.Py = M

{where X & Y are quantities of goods X & Y ; Px & Py are prices of goods X & Y}

a. Putting price of : X= medical services ; Y = other goods ; M = 100 :-

Budget Line : 4X + 5Y = 100

Budget Set represents good combinations, which a consumer can get - given prices & income (not necessarily spending all income)

Equation : X.Px + Y.Py ≤ M.  All the area below Budget Line is Budget Set.

b. Market rate of substitution is the slope of budget line which is equal to price ratio of the goods i.e Px/Py = 4/5 = 0.8

c. Increase in Px: reduces the intercept of the axis representing Good X consumption & rotates the curve inwards on that axis. As - less of that good can be consumed with same income, due to price rise.

d. Slope of Budget Constraint: is price ratio of the two goods (Px/Py), as it denotes the amount of a good needed to be sacrifised for gaining an additional unit of the other good.

You might be interested in
In lean operations, input resources arrive for processing only after the preceding batch has been completed. question 10 options
JulijaS [17]
The correct answer would be TRUE, In lean operations, input resources arrive for processing only after the preceding batch has been completed.
6 0
3 years ago
Purchase investment in bonds for $115,000. Sell land costing $40,000 for only $31,000, resulting in a $9,000 loss on sale of lan
Juli2301 [7.4K]

Answer:

net cash flow  26,800

Explanation:

NOTE: missing information attached.

Operating

net income                 104,000

removal of non-monetary terms

depreciation expense 37,000

loss on sale of land       9,000

adjusted net income        150,000

<u>Changes in working capital:</u>

Increase in AR                  (22,000)

Decrease in Inventory       40,000

Prepaid increase                 (7,200)

Decrease in AP                 (16,000)

decrease interest paayble (5,000)

increase in tax payable         1,000

net change in working capital     (9,200)

net cash generated from operating     140,800

investing

sale of land 31,000

purchase of debt securities (115,000)

cash used in investing activities 84,000

financing

cash dividends (30,000)

cash used in financing activites 30,000

net cash flow  26,800

beginning cash 227,800

ending cash 254,600

6 0
3 years ago
Mike and David signed a loan agreement together to borrow money for a boat. If David leaves town and cannot be found, what happe
iren [92.7K]
<span>I this case, the loan is still valid and at that point Mike would be responsible for finding a way to pay the loan back as agreed upon in the contract. This is called co-signing, when two parties both sign for a loan together. Both parties are responsible for the loan and even though David cannot be found, the loan must still be paid and Mike would be held responsible for this.</span>
4 0
3 years ago
Read 2 more answers
Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government s
Sloan [31]

Answer:

The correct answer is A) Lend support to the invisible hand by maintaining property rights and political stability .

Explanation:

The absence of the government in legislative tasks related to the market is, therefore, one of the main bases of the economic theory developed by Adam Smith throughout his bibliographical work. For Smith, the leaders must deal with other areas of control more focused on defense or justice, leaving the market to its free operation.

The invisible hand presupposes that there is an inertia by which the market and its self-regulation leads individuals to make the best decisions for the majority of the population to achieve well-being. In other words, it is a kind of automatic control mechanism that compensates the actions taken as a whole, regulating social conformations.

Therefore, it is assumed that the self-regulation facilitated to the markets helps to achieve an optimal market. To do this, individuals must behave in such a way that they can act without state mediation and in pursuit of their own interest.

The metaphor of the invisible hand also supposes that individuals are encouraged or held back to produce or not to follow the level of prices that exist in the market. Prices and profits are sufficient indicative to know when to participate in the market or not. Basically, if there is profit in a market niche, this supposes a stimulus for production, while losses lead individuals to quit.

7 0
3 years ago
When planning a procurement, it is useful to ______________.
Gre4nikov [31]

Answer & Explanation: When planning a procurement, it is useful to at least conduct a make or buy analysis which aids in determining the most cost effective approach, to consult and liaise with in-house experts in the departments of procurement, human resource, and legal, and also to insure the sponsor of the project signs off on the procurement plan. The goal of procurement planning is to increase the transparency and predictability of the procurement process while also deciding on what to buy, when and from what source.

5 0
3 years ago
Other questions:
  • Farmco just paid its annual dividend of $.32 per share. The dividends are expected to grow at 25 percent annually for the next 4
    6·1 answer
  • A company had a debit balance of $1,700 in the Allowance for Doubtful Accounts account and a debit balance of $450,000 in the Ac
    14·2 answers
  • When it comes to saving money, what is a good rule of thumb?
    10·1 answer
  • Problem 9-20 Two investment advisers are comparing performance. One averaged a 16% rate of return and the other a 15% rate of re
    14·1 answer
  • Operating leverage is easier to control and manage than financial leverage because operating leverage deals with the internal wo
    6·1 answer
  • Ann is trying to decide which one of two job offers she will accept. Several items are presented below: Job Offer A(1)Base Salar
    10·1 answer
  • 3. The economic system that is found in a Socialistic political system is a: *
    12·1 answer
  • The following information is provided for each division. Investment Center Net Income Average Assets Cameras and camcorders $ 6,
    15·1 answer
  • A yield can be paid in the form of?
    5·1 answer
  • What is the United States currency linked to?
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!