takuya asked in Social ScienceEconomics · 1 month ago

Problems not understood in microeconomics?

Please let me know.

It is a problem of the collection of problems without explanation. There are two other issues I'm not sure about, so I'm posting it in a separate post. Please let me know if you have time.

The budget for 4 students is 6,000 yen per week, and they have the choice of eating a set meal of 600 yen per school meal or buying wonton soup of 150 yen at a shop.

 Question 1 Write the budget constraint line of this person on the coordinate plane that shows the consumption points of school meal and wonton soup. 

 Question 2 When this person spends 3,000 yen each for school meal and wonton soup, show the indiscriminate curve showing the optimal combination and the optimal point A in the figure of Question 1. 

 Q3 Now, the price of wonton soup has risen to 200 yen, and this person has begun to allocate 1,800 yen for school meals and 4,200 yen for wonton soup. Show the new optimum point B in the figure in Question 1. Also, explain the impact of price changes using the chart in Question 1.

 Q4 Wonton soup consumption increased due to price changes, while school food consumption decreased. Explain from these results what can be said about income effects and substitution effects. Q5 Draw a demand curve for wonton soup using points A and B. Answer such a good thing.

1 Answer

Relevance
  • JuanB
    Lv 7
    1 month ago

    Question 1

    10 set meal, 0 soup

    9 set meal, 4 soup

    8 meal, 8 soup

    ....

    0 meal, 40 soup

Still have questions? Get answers by asking now.