Suppose a poor family spends 10 percent of its income on cheese. The familys income is $6,000.

Question:

Suppose a poor family spends 10 percent of its income on cheese. The

family’s income is $6,000. The government gives the family $2,000 in

free cheese.

a. How will this affect the family’s total cheese consumption?

b. Is the family better off by $2,000 or by less than $2,000?

Assume the family cannot resell the cheese.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics Barrons Business Review Series

ISBN: 9781438008776

6th Edition

Authors: Walter J. Wessels

See More Books

Question Posted: Feb 18, 2024 04:01 AM

See More Questions

1. In an economy with no government sector or foreign sector, saving must equal investment because a. Total demand is equal to consumption and investment. b. Total income is equal to consumption and...
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
A team of workers will build a wall of 400 m in 15 days if they work 8 hours every day. How long will they take if the wall has 600 m and they work 10 hours every day?
Can a party harm its own case during arbitration proceedings? If so, how?
# 5 How much depreciation expense should the company recognize in Year 1 ? $ 3 7 , 0 0 0 $ 6 1 , 6 6 7 $ 7 4 , 0 0 0 $ 8 0 , 0 0 0
Impute the sugars value of Quaker Oatmeal.
Discuss the role of sensitivity analysis in LP. Under what circumstances is it needed, and under what conditions do you think it is not necessary?
12. Growth stocks usually exhibit book-to-market ratios and earningsto-price ratios. A. low; low B. low; high C. high; low D. high; high
A workers wage income is taxed at 40%, while job amenities (such as having a nice working place) are not taxed at all. If the worker is earning $40,000 and the worker gets amenities worth $10,000,...
Mrs. Fearn is a schoolteacher. Her average tax rate is 20 percent and her marginal tax rate is 50 percent. She has to decide whether to teach summer school. She would earn $2,000, but she would have...
The following data on gross efficiency (ratio of work accomplished per minute to calorie expenditure per minute) for trained endurance cyclists were given in the article Cycling Efficiency Is Related...
RQ3: How might finance affect the formulation and application of corporate strategies?
How does this scene relate to a person who is?
How does Max learn to apologize?
Why are some on the spectrum bullied, and how must a parent feel?
Question 1: Response to Theresa Johnson?
Establish the following rules for working with differentials (where denotes a constant and u and v are functions of x). (a) dc = 0 (b) d(cu) = c du (c) d(u +v) = du + dv (d) d((uv) u dv + v du (e)...
On August 31, 2012, the balances of the accounts appearing in the ledger of Wood Interiors Company, a furniture wholesaler, are as follows:Prepare the August 31, 2012, closing entries for Wood...
Illustrate the connection between Sues AP, MP, AVC , and MC curves in graphs like Fig. 11. 7 . Fig. 11. 7 Sues Surfboards, in Problem 2 , hires workers at $500 a week and its total fixed cost is...
Calculate average total cost, average fixed cost, average variable cost, and marginal cost of each output in the table. Plot these points and sketch the short-run average and marginal cost curves....
Calculate total cost, total variable cost, and total fixed cost of each output in the table. Plot these points and sketch the short-run total cost curves. Sues Surfboards, in Problem 2 , hires...
Comfort Golf Products is considering whether to upgrade its equipment Managers are considering two options. Equipment manufactured by Stenback Inc. costs $1,000,000 and will last five years and have...
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 71,000 shares of $10 par common stock. 8,500 shares of $60 par, 6 percent, noncumulative preferred stock. On...
Read the following case and then answer questions On 1 January 2016 a company purchased a machine at a cost of $3,000. Its useful life is estimated to be 10 years and then it has a residual value of...

Suppose a poor family spends 10 percent of its income on cheese. The familys income is $6,000.

Question:

Step by Step Answer:

a Cheese consumption will go up by 1400 b The family is better off by less than ...View the full answer

Economics Barrons Business Review Series

Students also viewed these Business questions