Exam 1: Budget Constraint

Murphy used to consume 100 units of X and 50 units of Y when the price of X was $2 and the price of Y was $4. If the price of X rose to $3 and the price of Y rose to $8, how much would Murphy's income have to rise so that he could still afford his original bundle?

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 with positive prices and the price of one good is reduced, while income and other prices remain constant, then the size of the budget set is reduced.

If all prices double and income triples, then the budget line will become steeper.

If she spends all of her income on breadfruits and melons, Natalie can just afford 9 breadfruits and 10 melons per day. She could also use her entire budget to buy 3 breadfruits and 12 melons per day. The price of breadfruits is 8 yen each. How much is Natalie's income per day?

Murphy used to consume 100 units of X and 50 units of Y when the price of X was $2 and the price of Y was $4. If the price of X rose to $4 and the price of Y rose to $9, how much would Murphy's income have to rise so that he could still afford his original bundle?

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,

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

Bella's budget line for x and y depends on all of the following except

There are 3 goods. The price of good 1 is -1, the price of good 2 is +1, and the price of good 3 is +2. It is physically possible for a consumer to consume any commodity bundle with nonnegative amounts of each good. A consumer who has an income of 10 could afford to consume some commodity bundles that include 5 units of good 1 and 6 units of good 2.

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

If you have an income of $40 to spend, commodity 1 costs $2 per unit, and commodity 2 costs $10 per unit, then the equation for your budget line can be written

If you could exactly afford either 4 units of x and 24 units of y, or 9 units of x and 4 units of y, then if you spent all of your income on y, how many units of y could you buy?

In the economy of Mungo, discussed in your workbook, there is a third person called Ike. Ike has a red income of 94 rcus and a blue income of 25 bcus. (Recall that red prices are 2 rcus [red currency units] per unit of ambrosia and 6 rcus per unit of bubble gum. Blue prices are 1 bcu [blue currency unit] per unit of ambrosia and 1 bcu per unit of bubble gum. You have to pay twice for what you buy, once in red currency and once in blue currency.) If Ike spends all of his blue income but not all of his red income, then he consumes

If there are two goods and if one good has a negative price and the other has a positive price, then the slope of the budget line will be positive.

Georgina thrives on two goods: pears and bananas. The cost of pears is 30 pesos each and the cost of bananas is 15 pesos each. If her income is 180 pesos, how many pears can she buy if she spends all of her income on pears?

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

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