« previous next »

Author Question: What information do you need to draw your budget line? What is your budget line? What does it show ... (Read 112 times)

Mr. Wonderful

  • Hero Member
  • *****
  • Posts: 866
on: Jun 29, 2018
What information do you need to draw your budget line? What is your budget line? What does it show for any pair of goods?
 
  What will be an ideal response?

Question 2

Natural gas is a natural monopoly. The figure above shows the market for natural gas in the city of Lucknow. When a marginal cost pricing rule regulation is imposed, the price per household per month is ________.
 
  A) 30 and 20,000 household are served
  B) 10 and 40,000 household are served
  C) 10 and 20,000 household are served
  D) 20 and 30,000 households are served


ankilker

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 29, 2018
Answer to Question 1

To draw a budget line for any pair of goods, you need to know your income and the price of each good. The budget line shows all combinations of the two goods that you can afford. The slope of the budget line is the ratio of the prices and shows, therefore, the rate at which the market requires you to give up some of one for more of the other.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Aquatic microclimates: aquatic environments generally show less temperature variation compared to te Aquatic microclimates: aquatic environments generally show less temperature variation compared to te
Acromegaly. Acromegaly is a metabolic disorder in which excessive amounts of growth hormone are secr Acromegaly. Acromegaly is a metabolic disorder in which excessive amounts of growth hormone are secr
Demonstrating the use of venipuncture equipment. Using a syringe to draw blood. Demonstrating the use of venipuncture equipment. Using a syringe to draw blood.
Cumulative change for six personality-trait domains across the life course show distinct patterns. Cumulative change for six personality-trait domains across the life course show distinct patterns.
How to find the distance of any line segment How to find the distance of any line segment
Calculate the distance from point R(17,5) to the line ... Round to the nearest tenth of a Calculate the distance from point R(17,5) to the line ... Round to the nearest tenth of a
Video: Fractures Animation

For a complete list of videos, visit our video library