If the consumer\'s income is $ 44,926, the price of a Reebok ball is $ 2,030, th

Question

If the consumer's income is $ 44,926, the price of a Reebok ball is $ 2,030, the price of a training shirt is $ 740, and the conumer ity function is represented by UCN, R) = An® R1khere A = 9.743, alpha = 0.11 and betas 0.04, answers he following. questions, Calculate the maximum number of shirts that the consumer can buy if he does not buy any tennis shoes. 1- 2- Calculate the maximum number of tennis pairs that the consumer can buy if he does not buy a shirt 3- Calculate the Marginal Market Substitution Rate when the pairs of tennis are represented on the "y" axis and the shirts are identified on the x" axis. 4- Calculate the number of tenn is that the househeld must consume to maximize its 5- Calculate the number of shirts that the household must consume to maximize its usefuln

Explanation / Answer

Question 1

Consumer's income = $44,926

Price of a training shirt = $740

Calculate the maximum number of shirts that the consumer can buy -

Maximum number of shirts that can be bought = Total consumer income/Price of a shirt

Maximum number of shirts that can be bought = $44,926/$740 = 60.71 or 60

The maximum number of shirts that the consumer can buy if he does not buy any tennis shoes is 60 shirts.

Question 2

Consumer's income = $44,926

Price of a pair of tennis shoes = $2,030

Calculate the maximum number of tennis pairs that the consumer can buy -

Maximum number of tennis pairs that can be bought = Total consumer income/Price of a tennis pair

Maximum number of tennis pairs that can be bought = $44,926/$2,030 = 22.13 or 22

The maximum number of tennis pairs that the consumer can buy if he does not buy any shirt is 22 tennis pairs.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.