Question: Continental Long Distance Telephone Service offers an optional package for
Continental Long Distance Telephone Service offers an optional package for in-state calling whereby each month the subscriber gets the first 50 min of in-state calls free, the next 100 min at $0.25/min, and any additional time at the normal rate of $0.50/min. Draw the budget constraint for in-state phone calls and the composite good for a subscriber with an income of $400/mo.
Relevant QuestionsYou have the option of renting a car on a daily basis for $40/day or on a weekly basis for $200/wk. draw your budget constraint for a budget of $360/trip.a. Find your best affordable bundle if your travel preferences are ...Mr. R. Plane, a retired college administrator, consumes only grapes and the composite good Y (PY = $1). His income consists of $10,000/yr from social security, plus the proceeds from whatever he sells of the 2000 bushels of ...Albert has a weekly allowance of $17, all of which he spends on used CDs (C) and movie rentals (M), whose respective prices are $4 and $3. His utility from these purchases is given by U(C) + V(M). If the values of U(C) and ...Bruce has the same income and faces the same prices as Sam in Problem 1, but he views 1 cup of orange juice as a perfect substitute for 1 cup of apple juice. Find Bruce’s optimal consumption bundle. How much additional ...A hot dog vendor faces a daily demand curve of Q = 1800 - 15P, where P is the price of a hot dog in cents and Q is the number of hot dogs purchased each day.a. If the vendor has been selling 300 hot dogs each day, how much ...
Post your question