Maria\'s preferences over weekly baskets of glasses of Wine (W) and slices of Ch
ID: 1137994 • Letter: M
Question
Maria's preferences over weekly baskets of glasses of Wine (W) and slices of Cheese (C) are partially represented in the graph below. Each week she budgets $45.00 to spend on these goods. The current price of Wine $7.50/Glass and the price of Cheese is $2.50/Slice. 30 10 10 20 30 6. Maria maximizes her satisfaction consuming slices of cheese each week e) 12 b) 6 c) 8 d) 10 7. Suppose the price of wine falls from $7.50 per glass to $1.25 per glass. The change in Maria's quantity demanded of wine due to the substitution effect equalsglasses of wine. b) 2 c)4 d) 6 e) 8 8. Suppose the price of wine falls from $7.50 per glass to $1.25 per glass. The change in Maria's quantity demanded of wine due to the income effect equals a)-2 glasses of wine. e) 6 b) o c) 2 d) 4 9. In this range of prices and income we can determine that Maria considers Wine and Cheese to be goods, and she considers wine to be a(n)- good. Explain. a) substitute; normal b) substitute; inferior c) complementary; inferior d) complementary; normal e) None of the above are correct.Explanation / Answer
Question:- maria maximizes her satisfaction consuming ....slices of cheese each week
Answer:- 12
Question:- suppose the price of wine falls from $7.50 per glass to $1.25 per glass. the change in Maria's quantity demanded of wine due to the substitution effect equals ...........glasses of wine
Answer:- 8
Question- suppose the price of wine falls from $7.50 per glass to $1.25 per glass. the change in Maria's quantity demanded of wine due to income effect equals ...........glasses of wine
Answer:- (-2 )
Question:- In this range of prices and income, we can determine that Maria considers Wine and Cheese to be ..............goods and she considers Wine to be a ...........good.
Answer:- Complementary; inferior