4. Sloan and Lyra are both avid gamers, and they both have an annual budget of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
4. Sloan and Lyra are both avid gamers, and they both have an annual budget of $360 to spend on video games. There are two kinds of video game, those sponsored by an organization called Mega Games (X) and All Others (Y). The price of a game from Mega Games is $60/game and the price of all other games is $30/game. a. Show the budget constraint. Label it BCo. 15 All Other Games HENR900 C. 14 13 12 11 654 m 3 210 ~ 3 4 Mega Games Mega Games allows you to join a Super Gamer Tier. For an annual fee, $60, the price of each video game is half of the original price ($30). In other words, once you have paid Mega Games $60, the price of all video games from Mega Games is $30. Everyone is eligible to join the Super Gamer Tier if they pay the fee, and the reduced price is only available to tier members. 5 b. Draw this budget constraint and label it BC. (hints: What are the endpoints of the BC? What does paying the fee do to income? What does the price change from $60 to $30 do to the slope?) Write the equation(s) for the new budget constraint. e. If Sloan really likes Mega Games, would he want to join Super Gamer Tier? Explain. g. If Lyra really likes All Other Games, would she want to join Super Gamer Tier? Explain. 4. Sloan and Lyra are both avid gamers, and they both have an annual budget of $360 to spend on video games. There are two kinds of video game, those sponsored by an organization called Mega Games (X) and All Others (Y). The price of a game from Mega Games is $60/game and the price of all other games is $30/game. a. Show the budget constraint. Label it BCo. 15 All Other Games HENR900 C. 14 13 12 11 654 m 3 210 ~ 3 4 Mega Games Mega Games allows you to join a Super Gamer Tier. For an annual fee, $60, the price of each video game is half of the original price ($30). In other words, once you have paid Mega Games $60, the price of all video games from Mega Games is $30. Everyone is eligible to join the Super Gamer Tier if they pay the fee, and the reduced price is only available to tier members. 5 b. Draw this budget constraint and label it BC. (hints: What are the endpoints of the BC? What does paying the fee do to income? What does the price change from $60 to $30 do to the slope?) Write the equation(s) for the new budget constraint. e. If Sloan really likes Mega Games, would he want to join Super Gamer Tier? Explain. g. If Lyra really likes All Other Games, would she want to join Super Gamer Tier? Explain.
Expert Answer:
Answer rating: 100% (QA)
Here are the steps to solve this problem a Original budget constraint B... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Calculate and compare the efficiency of the two turbines of Prob. 14123. They should be the same since we are assuming dynamic similarity. However, the larger turbine will actually be slightly more...
-
Why are slow-moving items dangerous to the small business? What can be done to liquidate them from inventory?
-
Describe four levels of a cost hierarchy?
-
Explain how emissions trading schemes are likely to affect financial reporting.
-
Presented below is the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance the Trinity Parish Fire District, a special-purpose entity engaged in a single governmental...
-
18. The atomic number of elements P, Q, R and T are 19,17, 14 and 6 respectively. The pair of elements that can react to form an ionic compound is A. Q and T B. R and Q C. Q and P D. R and T 19. The...
-
V. N. Murti and V. K. Sastri investigated the production characteristics of various Indian industries, including cotton and sugar. They specified CobbDouglas production functions for output (Q) as a...
-
Organizations exchange information internally and externally. External messages go to customers, vendors, the government, and other business partners. Internal messages travel upward to supervisors,...
-
A landlord appeals and a tenant cross-appeals a district court ruling affirming in part and reversing in part a small claims court decision in a residential landlordtenant dispute. This is a case...
-
In March 2014, Barbara Ann Morris executed an estate plan that designated her daughters, Karen Wyman and Pamala Bruckner, as the beneficiaries and Wyman as the personal representative of her estate....
-
The CCR Project is a forest management effort and timber sale affecting 11,742 acres in Mt. Hood National Forest. The United States Forest Service (USFS) undertook the CCR Project in order to provide...
-
Joseph Guenther and Michelle Ryerson were an unmarried couple. In June 2009, they purchased land in Idaho and formed a partnership to develop it into a profitable vineyard. There was no written...
-
Protect My Check, Inc. (PMC), is a Section 501(c)(4), an organization that must not be organized for profit and must be operated exclusively to promote social welfare. While it is based in Florida,...
-
Consider the two primary factions in American politics, the Federalists (like James Madison portrayed in his writing) and Anti-Federalists who supported The Articles of Confederation. Compare and...
-
Assume today is the 21st of February. Using the information below, FT Extract, answer the following questions (parts i and ii). You work for a US company that is due to receive 250 million in June...
-
Starbucks Corporation (www.starbucks.com) is named after the first mate in Herman Melvilles Moby Dick. It was founded in 1971 in Seattle. The original name of the company was Starbucks Coffee, Tea...
-
When, in 1974, employees at the Japanese design company Sanrio created Hello Kitty (www.sanrio. com/characters/HelloKitty/), the small, rounded cartoon cat with a red bow between her ears and no...
-
China became a member of the WTO on 11 December 2001 and, overall, the Chinese economy has shown exceptional economic growth over the last decade, closely associated with Chinas increased integration...
-
For coordinates \(\left(x^{1}, x^{2} ight)\) and metric \(g=\operatorname{diag}\left(g_{11}, g_{22} ight)\), the Gaussian curvature is For a sphere with coordinates defined in the following figure,...
-
Consider the holonomic basis defined in Box 26.1 . Using that the tangent vector for a curve can be written \(t=t^{\mu} e_{\mu}=\left(d x^{\mu} / d \lambda ight) e_{\mu}\), show that Thus, \(g_{\mu...
-
The Lie bracket of vector fields \(A\) and \(B\) is defined as their commutator, \([A, B]=\) \(A B-B A\). The Lie bracket of two basis vectors vanishes for a coordinate basis but not for a...
Study smarter with the SolutionInn App