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  • Budget Assignment

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    babur raiyan
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    Rummy has $40 per week to spend on burgers costing $5 each and cake slices costing $2 each. The document asks questions about calculating Rummy's real income in terms of cake slices, the relative price of cake compared to burgers, the equation for Rummy's budget line with $40 income, how his budget line changes if income increases to $60, and how it changes if cake price doubles to $4 but income stays $40. It also asks how many $5 burgers Rummy could buy if his income was $20 and he spent it all on burgers.

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    Rummy has $40 per week to spend on burgers costing $5 each and cake slices costing $2 each. The document asks questions about calculating Rummy's real income in terms of cake slices, the relative price of cake compared to burgers, the equation for Rummy's budget line with $40 income, how his budget line changes if income increases to $60, and how it changes if cake price doubles to $4 but income stays $40. It also asks how many $5 burgers Rummy could buy if his income was $20 and he spent it all on burgers.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    170 views1 page

    Budget Assignment

    Uploaded by

    babur raiyan
    Rummy has $40 per week to spend on burgers costing $5 each and cake slices costing $2 each. The document asks questions about calculating Rummy's real income in terms of cake slices, the relative price of cake compared to burgers, the equation for Rummy's budget line with $40 income, how his budget line changes if income increases to $60, and how it changes if cake price doubles to $4 but income stays $40. It also asks how many $5 burgers Rummy could buy if his income was $20 and he spent it all on burgers.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
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    Assignment

    1. Rummy has $40 a week to spend on burger and cake. The price of burger is $5 and the
    price of cake is $2 a slice.

    a. Calculate Rummy’s real income in terms of cake.


    b. Calculate the relative price of cake in terms of burger.
    c. Calculate the equation for Amy’s budget line.
    d. If Rummy’s income increases to $60 a week and the price of burger and cake remain
    unchanged describe the change of his budget line.
    e. If the price of cake doubles while the price of burger remains at $5 and Rummy’s
    income remains at $40 describe the change in his budget line.
    f. If Rummy’s income is $20 and all the money spend to purchase burger, how many burger
    he can purchase?

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