21 Jul Assume that shoes and socks are complements and both are normal goods
SEQ CHAPTER h r 1Homework 4
1. (5 points) Assume that shoes and socks are complements and both are normal goods.
(a) Please explain what will happen to the consumption of both shoes and socks if just the price
of shoes decreases.
(b) Please explain what will happen to the consumption of both shoes and socks if consumer
For both (a) and (b), a graph may be included but is not necessary.
2. (5 points) Suppose a consumer derives satisfaction from consuming hamburgers and hot dogs. How will the budget line change when the consumer is offered a “buy two, get one free” deal for hot dogs (limit one free hot dog). Please label the graph.
3. (5 points)
(a) Please explain how “Buy one get one free” is different from a half price (50% off) sale.
(b) Please explain why a store would prefer a buy one get one free sale instead of a half price sale (50% off sale).
4. (5 points) Assume that a consumer consumers 2 goods, X and Y and both goods are inferior goods. Will the level of utility (satisfaction) as obtained from indifference curves still increase as you move outward from a lower indifference curve to a higher indifference curve (as the consumer moves outward from the origin as show by the arrow in the graph given below. Please give an explanation.
It is not necessary to include the graph in the answer. The graph has been given just to explain the question. It is not necessary to include the graph in the answer.
5. (5 points) Assume that the following graph show the indifference curve and budget line for a consumer who is choosing between “all other items” and “hand sanitizer”.
We know that the preferences and demand for hand sanitizer increased dramatically starting in mid-March 2020 due to the coronavirus pandemic. How would you show a change in preferences for hand sanitizer on the graph given above? Would the budget line change, or would the position of the indifference curve change? You may assume that income and prices of all other items and hand sanitizers did not change. Please give an explanation and show the changes on the graph.
HOW OUR WEBSITE WORKS
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of
HIGH QUALITY & PLAGIARISM FREE.
To make an Order you only need to click ORDER NOW and we will direct you to our Order Page at WriteDen. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Deadline range from 6 hours to 30 days.
Once done with writing your paper we will upload it to your account on our website and also forward a copy to your email.
Upon receiving your paper, review it and if any changes are needed contact us immediately. We offer unlimited revisions at no extra cost.
Is it Safe to use our services?
We never resell papers on this site. Meaning after your purchase you will get an original copy of your assignment and you have all the rights to use the paper.
Our price ranges from $8-$14 per page. If you are short of Budget, contact our Live Support for a Discount Code. All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.
Please note we do not have prewritten answers. We need some time to prepare a perfect essay for you.