economics questions

10. The price of DVDs (D) is $20 and the price of CDs (0) is $10. Philip has a budget of $100 to spend on the two goods. Suppose that he has already bought one DVD and one CD. In addition, there are 3 more DVDs and 5 more CDs that he would really like to buy. a. Given the above prices and income, draw his budget line on a graph with CDs on the horizontal axis. b. Considering what he has already purchased, and what he still wants to purchase, identify the three different bundles of CDs and DVDs that he could choose. For this part of the question, assume that he cannot purchase fractional units. 14. Consumers in Georgia pay twice as much for avocados as they do for peaches. However, avocados and peaches are the same price in California. Ifconsumers in both states maximize utility, will the marginal rate of substitution of peaches for avocados be the same for consumers in both states? If not, which will be higher? 26. Which oi\" the Foffowing events woaid cause a movement along the demand carve For US. produced clothing; and which woaid cause a shiFt in the demand carve? a. the removal oF quotas on the importation oF Foreign clothes to. an increase in the income oF US. citizens c. a cat in the industry's costs on\" producing domestic clothes that is passed on to the market in the Form oF iower prices \f4- In this chapter, consumer preferences fer various commodities did not change during the analysis. Yet in some situations, preferences do change as consumption occurs. Discuss why and how preferences might change over time with consumption of these two commodities: a. cigarettes b. dinner for the rst time at a restaurant with a special cuisine