Quantcast

A community for students. Sign up today!

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

GoldRush18

  • 2 years ago

Suppose Sandra has $16.00 to spend only on ripe bananas and plums. Ripe bananas cost $0.80 each and plums cost $0.20 each. a. write down the algebraic equation for sandra's budget constraint b. if sandra buys only ripe bananas, calculate how many bananas can be bought? c. if sandra buys only plums, calculate how many plums can be bought? d if sandra were to buy 12 ripe bananas, how many plums could be bought with the funds left over? e. if sandra consumes one less ripe banana (i.e 11) how many more plums could be bought? f. is the rate of trade off the same no matter how many ripe bananas are relinquished? g. calculate the opportunity cost of ripe bananas for sandra? h. calculate the opportunity cost of ripe plums for sandra? i. graph the sandra's budget showing the points mentioned in a-d

  • This Question is Closed
  1. shivamamity
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    are you solving any assignment ?

  2. GoldRush18
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    what do you mean by that?

  3. Klanfer
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 1

    Suppose: banana price = p1 = 0.8 plum price = p2 = 0.2 banana quantity = q1 plum quantity = q2 A- budget constrain p1.x1 + p2.x2 = 16 B- q1 = 16/p1 = 16/0.8 = 20 C- q2 = 16/p2 = 16/0.2 = 80 D- q1 = 12 Money Spent p1*q1 = 12.0.8 = 9.6 Funds Left: 16 - 9.6 = 6.4 q2 = 6.4/p2 = 6.4/0.2 = 32 E- q1=11 Money Spent p1*q1 = 11.0.8 = 8.8 Funds Left: 16 - 8.8 = 7.2 q2 = 7.2/p2 = 7.2/0.2 = 36 More 4 plums F- I don't know this term, relinquished… I G- Opp Cost of Bananas = How many plums she has to relinquish to buy one more plum? Using all her budget, she can have: Only buys bananas: q1= 20, q2=0 Only buys plums : q1=0, q2=80 Opp Cost of bananas in terms of plums: 0-20/80-0= - 0.25 She has to abdicate of 0.25 bananas to buy one more plum. H- Opp Cost of Plums = How many bananas she has to relinquish to buy one more banana? Using all her budget, she can have: Only buys bananas: q1= 20, q2=0 Only buys plums : q1=0, q2=80 Opp Cost of plums in terms of bananas: 0-80/20-0= - 4 She has to abdicate of 4 plums to buy one more banana. I- Easy

  4. Klanfer
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 1

    Ops A- budget constrain p1.q1 + p2.q2 = 16

  5. Klanfer
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 1

    F - I think relinquish is to give up right? Well. if the amount of bananas you have to give up to get more plums change, the rate of trade-off changes as well.. SOrry if i told something wrong.. Bye

  6. Mysthalin
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 1

    Klanfer - The rate of trade off remains the same at 0.25 bananas/plum, or 4 plums/banana. The costs do not change with the number of bananas bought.

  7. Klanfer
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 1

    Sure I agrre with you Mysthalin. HOwever, note that I did not say that the cost will change as she buys more or less bananas... What I said is that the cost will change, if the amount of bananas she needs to give up to buy more plums changes... In other words, if the numbers of bananas she needs to give up to buy more plums changes, the trade-off rate will be different.. since this is the definition of trade-off... See you!

  8. Mysthalin
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 1

    If neither costs change, that means that the trade-off rate will remain the same, as the number of plums/bananas you need to give up will also remain the same.

  9. Not the answer you are looking for?
    Search for more explanations.

    Search OpenStudy
    • Attachments:

Ask your own question

Ask a Question
Find more explanations on OpenStudy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.