1)

(A)

1) Athena has $60 of birthday money which she will only spend on two goods, Lego Sets and Barbie Dolls.A Lego Set is $20, a Barbie Doll is $10.

A) Determine if each of the following combinations are on Athena'sBudget Constraint.

i)One Lego Set and One Barbie Doll

a)Not on her budget constraint

b) yes, on her budget constraint

2) Two Lego Sets and Two Barbie Dolls

a)Not on her budget constraint

b) yes, on her budget constraint

3) Three Lego Sets and Three Barbie Dolls

a)Not on her budget constraint

b) yes, on her budget constraint

(B) Determine if each of the following combinations are on Athena'sOpportunity Set.

1)One Lego Set and One Barbie Doll

a)Not in her opportunity set

b) yes, in her opportunity set

2) Two Lego Sets and Two Barbie Dolls

a) Not in her opportunity set

b) yes, in her opportunity set

3) Three Lego Sets and Three Barbie Dolls

a) Not in her opportunity set

b) yes, in her opportunity set

C). For Athena, what best describes the opportunity cost of one Lego Set?

a) 1/3 of her bugdet

b) two barbie dolls

c) $ 20

d) 1/2 a barbie doll

2)

Answer question 8 and use the graph to answer question 9-13

Question 8 9 pts Use the graph below to answer questions the next ve questions. In an effort to help the student body, the administration of a university has successfully lobbied the municipal government to institute a price ceiling on apartments near campus. As a result, the maximum price for apartments will be $800. The graph of the market for apartments near campus is shown below. Use this graph to answer the following questions. Off Campus Housing Market Supply | | $1400 I | I I 0 1 2 3 4 5 6 7 8 9 10 Quantity (Hundreds of Apartments) (a) Prior to the institution of price ceiling, what was the equilibrium price of an apartment near campus? (Enter your answer without commas, dollar signs, or cents) (b) Does the institution of a price ceiling increase or decrease the quantity of apartments demanded? (Enter increase or decrease, check your spelling) (c) How many fewer apartments are rented after the price ceiling was put in place than were rented without the price ceiling? (Enter just the number, do not put any words or labels with your answer) D Question 9 5 What area(s) represent consumer surplus BEFORE the price ceiling is imposed? (select all that apply) D Question 10 5 What area(s) represent consumer surplus AFTER the price ceiling is imposed? (select all that apply) Question 11 10 pts Are the consumers in this market, as a group, helped or harmed by the government setting the maximum price for apartments? Are all consumers in this market helped by the price intervention? Explain, for full credit please reference your answer to the previous two questions as part of your explanation. Question 12 What area(s) represent dead weight loss created as a result of the price ceiling? (select all that apply) CIA DB