The figure below depicts a typical individual's income and consumption paths over his or her lifetime. Use the list on the right to label the diagram. m con www. p Income path Borrowing region Consumption path D) Dissaving region Saving region
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- Savings (thousand) Consumption (thousands) 6 Panel A Consumption Move this point along C C Y=C+S O Macmillan Learning Adjust the interactive graph in order to observe the relationship between income, consumption, and saving changes as income increases. Use the graph to help you answer the following questions. 2 3 4 5 6 Panel Bincome (thousands) Savings 4 5 6 S Income (thousands) a. At an income of 4000, how much is consumed? How much is saved? Consumption = $ -500 Savings = $3500 O Consumption = $0 Savings $4000 = Consumption = $ 3500 Savings = $-500 O Consumption = $4000 Savings = $0B V F Di D2 a movement from Point A to Point B Refer to Figure 1. Which of the following movements shows the effects of households' decision to save more? a movement from Point F to Point A 52 a movement from Point C to Point F S1 a movement from Point B to Point Ci will 10 upvotes no chatgpt
- Explain how does adecrease in the current income y affect the consumer’s consumption-saving decision. In particular,explain: 1) How will current consumption c, future consumption c', and savings s change; 2) Arethere any substitution effect or income effect. Make sure you draw two figures, one for the borrowersand one for the lenders.Jason spends his entire budget on coffee and doughnuts. You have the following data on his choices: Table 1: Jason's consumption choice and budget Price / cup of coffee Price / doughnut cups purchased doughnuts purchased Income February 2 1 4 22 March 5/2 3/4 10 8 31 April 3 1/2 8 14 31 Assume Jason 's preferences are monotone, the same over the three months, and that he has no way to save or borrow across periods. Are Jason's choices consistent with utility maximization?John is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns a typical student income from the parents, GHS 400 a month. She can either spend it all on Yoghurts and get 50, or she can spend it all on Bread and get 200 loaves. a. Given this information, construct the equation for John’s Budget Line. b. John gets a research grant and her income increases to GHS 800 per month. What is the new equation of her budget line? What if income stays constant at GHS 400 and the price of Yoghurts increase to GHS10? c. Assume that prices are the same as used in part a. If the marginal utility of a Yoghurt is 20, what is the marginal utility of Bread if she is maximizing her utility?
- What is it mean by full price and income when discussing household consumption?AMoving to the next question prevents changes to this answer. Question 3 of Question 3 1 points Save Answ The branch of economics that analyses the market behaviour of individual consumers and firms in an attemp to understand the decision-making process of firms and households. a)Gross Domestic Product O b)Micro Economics c)Macro Economics d)Logistics e)Gross National Product O0000Prepare a SWOT analysis using the details below. Maria is planning to open up a Cafeteria near her house. She closed her previousCafeteria few months ago because the rental keeps getting higher and the income is decliningbecause of the COVID19 pandemic. It came up to her the idea to open again since a lot ofpeople are asking for online delivery of their favorite snacks offered in her shop since most ofthe people would stay at home and would prefer food delivered in their doorsteps. Since sheowned a vacant lot near her house, and she thought that re-opening her shop in that locationwould be a great idea and she will not pay rentals anymore. And her Café Services will stillcontinue but with the added services like the Food Panda does.
- Goc x gxE6sNyFVyZ8t6Cr5YQrfcD8Wt sVY/preview pru=AAABd8dfpYk*Dq4nvdIWtKn ZU Table 1 shows some data on the prices and quantities for a simple economy that produces the following goods and services. (Jadual 1 menunjukkan beberapa data harga dan kuantiti untuk sebuah ekonomi sederhanG yang menghasilkan barang dan perkhidmatan berikut ] Table 1 Price and quantity for three types of product Jadual 1 Harga dan kuantiti untuk tiga jenis produk] Year 2018 [Tahun 2018] Price Year 2019 Year 2017 [Tahun 2017] Quantity Kuantili) Product Produk Quantity (Kuantii] [Tahun 2019] Quantity [Kuantiti] Price Price (RM) (Harga RM] 1. (RM) Harga RM)] (RM) Harga (RM)] 1.25 180 75 675 200 200 90 90 100 100 120 06 05 600 05 630 (1) Compute the values of nominal GDP in 2017, 2018 and 2019. (Kirakan nilai-nilai KDNK nominal pada :01 2018 dan 2019] Compute the values of real GDP and GDP deflator in 2018 and 2019 (using 2011 as the base vear). Kirakan nilai-lai KD K sebenar dan KDNK pendefiast pada 2018 dan 2019…If the budget line rotates from blue to red. Consumption Next Year C B Consumption Today O The interest rate has increased. O The interest rate has decreased. O The interest rate has not changed. O If the person borrowed a $1 today they would owe more in the future. O If the person borrowed a $1 today they would owe less in the future. O If the person saved a $1 today they would have more money in the future on the red budget line compared to the blue budget line. O If the person saved a $1 today they would have less money in the future on the red budget line compared to the blue budget line.Explain how does adecrease in the current income y affect the consumer’s consumption-saving decision. In particular,explain: 1) How will current consumption c, future consumption c′, and savings s change; 2) Arethere any substitution effect or income effect. Make sure you draw two figures, one for the borrowersand one for the lenders