Question
Malena has $850 per month to spend on electricity and other goods. Price of other goods is one, while price of electricity is $0.2 per
Malena has $850 per month to spend on electricity and "other goods". Price of "other goods" is one, while price of electricity is $0.2 per kilowatt hour (kWh) for the first 1,200 kWh of power per month and $0.06 for any additional kWh. Put electricity on the horizontal axis.
a) For the amount of electricity less than 500 kwH per month, the slope of her budget line is [ Select ] ["-0.02", "-0.03", "-0.04", "-0.05", "-0.06", "-0.2", "-0.3", "-0.4", "-0.5", "-0.6", "-2", "-3", "-4", "-5", "none of the above"]
b) A bundle of 5,000 kwH and 450 of "other goods" is feasible for her [ Select ] ["yes", "no", "not enough information to determine"]
c) A bundle of 2,000 kwH and 500 of "other goods" is feasible for her [ Select ] ["yes", "no", "not enough information to determine"]
d) A bundle of 6,000 kwH and 320 of "other goods" is feasible for her [ Select ] ["yes", "no", "not enough information to determine"]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started