{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapters 3, 4 Practice Problems

# Chapters 3, 4 Practice Problems - Practice Problems for...

This preview shows pages 1–3. Sign up to view the full content.

Q Pepsi 7 5 Q Coke AGEC 105 Practice Problems for Chapters 3 and 4 1. A consumer’s budget line shows a. The utility that an individual would receive from consuming various combinations of two goods b. The combination of two goods that an individual is able to purchase, given prices and income c. How income is influenced by prices of goods d. How changes in income affect utility e. The relationship between prices and income 2. A family on a trip budgets \$800 for sit-down restaurant meals and fast food. If the price of a fast food meal for the family is \$20, how many such meals can the family buy if they do not eat at restaurants? 3. If a consumer’s budget line between meat and potatoes has a vertical axis intercept at 100 pounds of meat and a horizontal intercept at 100 pounds of potatoes

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
pound of potatoes 4. If income increases, there will be a parallel downward shift of the budget line a. True b. False 5. Suppose that Trey spends all of his income on vacation trips and textbooks. If the price of a trip is \$200 and the price of a textbook is \$50, then the slope of his budget line (assuming vacation trips are measured on the vertical axis) would be
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern