Use the following graph showing two budget lines, LR and LZ to answer the following questions. The consumerâs income is $720.
a. For budget line LR the price of Y is $______ and the price of X is $______. The equation for budget line LR is ________________________.
b. For budget line LM the price of Y is $______ and the price of X is $______. The equation for budget line LM is _____________________.
Graph Info: LR y is 60, x is 40 LM y is 60, x is 80
Y points are 0, 20, 40, 60, 80
X points are 0, 20, 40, 60, 80, 100
Please show your work on how you achieved your answers. Thank you. Kimberly
Use the following graph showing two budget lines, LR and LZ to answer the following questions. The consumerâs income is $720.
a. For budget line LR the price of Y is $______ and the price of X is $______. The equation for budget line LR is ________________________.
b. For budget line LM the price of Y is $______ and the price of X is $______. The equation for budget line LM is _____________________.
Graph Info: LR y is 60, x is 40 LM y is 60, x is 80
Y points are 0, 20, 40, 60, 80
X points are 0, 20, 40, 60, 80, 100
Please show your work on how you achieved your answers. Thank you. Kimberly
Related textbook solutions
Related questions
Assume that an individual consumes two goods, X and Y. The total utility (assumed measurable) of each good is independent of the consumption rate of other goods.
The price of X and Y are respectively $40 and $60. Use the following table of total utilities to answer the following questions.
| Good | Total utility X | Total utility Y |
| 1 | 20 | 45 |
| 2 | 38 | 78 |
| 3 | 54 | 108 |
| 4 | 68 | 135 |
| 5 | 80 | 159 |
| 6 | 90 | 180 |
a. The marginal utility of the fourth unit of Y is__________.
b. The marginal utility of the fifth unit of X is___________.
c. The marginal utility per dollar spent on the third unit of X is__________.
d. The marginal utility per dollar spent on the second unit of Y is__________.
e. If the consumer has $420 to spend, ______ unit of X and _______units of Y maximize utility subject to the budget constraint. Explain.
f. If the consumer has $220 to spend, _______ units of X and_______ units of Y maximize utility subject to the budget constraint. Explain.
g. If the consumer wanted 4 units of X and 6 units of Y, what would have to be his/her budget constraint in order to maximize his/her utility? Explain.
